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Fitch Affirms CGS' Long-Term IDRs, SSRs With Stable Outlook

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Fitch Ratings affirmed China Galaxy Securities' (HKG:6881, SHA:601881) long-term issuer default ratings and shareholder support ratings or SSRs at BBB+, with a stable outlook, the ratings firm said in a commentary on June 26.

The securities broker's Hong Kong shares rose 2% during Monday's afternoon trade.

The ratings firm's affirmation is based on the company's expected "extraordinary support" from its ultimate controlling shareholder, Central Huijin, in the event of stress, as well as government support for Central Huijin that would flow through the company. The stable outlook reflects the "extraordinary parental support" that will stay in the medium term.

The long-term IDRs and SSRs of the company's subsidiary, CGS International Holdings, were also affirmed at bbb+. The long-term IDRs of Singaporean units, CGS International Securities and CGS International Securities Singapore, were upgraded to BBB from BBB-, while their SSRs were also upgraded to bbb from bbb-. Their outlook is stable.

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