Fitch Ratings assigned long- and short-term issuer default ratings of BBB-/F3 to Switzerland-based Leonteq AG and unit Leonteq Securities AG.
The outlook on the long-term ratings is positive.
The agency said the ratings reflect the sound financial metrics of Leonteq, including its adequate and improving capitalization, moderate credit risk exposure and comprehensive liquidity management. The ratings also took into account the company's moderate, albeit developing, franchise as well as exposure to concentration risk, particularly with regards to its relatively small number of structured product issuance partners.
The positive outlook, meanwhile, reflects Fitch's view that improved issuance partner diversification, enhanced scale, more efficient balance sheet utilization and consistent improvement in Leonteq's capital base in the next 12 to 18 months could lead to a one-notch upgrade in the company's long-term rating.
Based in Zurich, Leonteq offers investment products and related services through three segments of investment, banking and insurance and wealth planning.