S&P Global Ratings raised its outlook on China International Capital Corp. Ltd. and China International Capital Corp. (Hong Kong) Ltd. to positive from stable.
At the same time, the rating agency affirmed the long- and short-term issuer credit ratings of both companies at BBB and A-2, respectively.
The rating agency said Dec. 12 that the outlook revision takes into account the parent's improving revenue stability, supported by a growing market position and more diverse business lines after the China-based investment banking group acquired China Investment Securities Co. Ltd.
S&P expects the company to maintain its brokerage market position, strong capitalization and prudent risk appetite, supported by a high quality and liquid investment book, in the next one to two years.
The positive outlook on the Hong Kong unit reflects the outlook on its parent company.
S&P said it could upgrade the ratings if the company's business stability and diversification strengthen on the back of continued improvement in its overseas expansion. However, the rating agency could revise the outlook back to stable if the company's business developments fall below S&P's expectations.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.
