Fitch Ratings maintained Dongxing Securities' (SHA:601198) long-term issuer default rating of BBB- on rating watch positive following a takeover proposal by China International Capital Corp. (HKG:3908, SHA:601995)
The ratings reflect Fitch's expectation of support from Dongxing parent, China Orient Asset Management, as well as the merger being positive for Dongxing's credit profile.
A consolidation of state ownership will help enhance Dongxing's operating scale and product capabilities, Fitch said.
The debt watcher will resolve the rating watch positive on Dongxing upon regulatory approval.
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