S&P Global Ratings on Aug. 2 affirmed Portugal-based Haitong Bank SA's long- and short-term counterparty credit ratings at BB-/B and revised the outlook on the bank to negative from stable.

The outlook revision reflects the bank's slow progress in changing its business model and returning to profitability, consequently putting its internal capital generation at a risk of further erosion. The bank's creditworthiness is restricted by the challenges of reshaping the business model, weaker asset quality compared to peers and limited capital generation capacity.

The ratings factor in the agency's view that the bank can receive extraordinary financial assistance from its Chinese parent Haitong Securities Co. Ltd., in case of need.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.