Everbright Sun Hung Kai given first-time "Baa3" long-term issuer rating from Moody's with stable rating outlook
HONG KONG, March 6, 2018 /PRNewswire/ -- Everbright Sun Hung Kai Company Limited ("Everbright Sun Hung Kai" or the "company") is pleased to announce that it has been assigned by Moody's Investors Service ("Moody's") first-time "Baa3" long-term issuer and "Prime-3" short-term issuer ratings with stable long-term rating outlook.
According to Moody's, the "Baa3" long-term issuer rating reflects Everbright Sun Hung Kai's long-established foundation in Hong Kong's retail brokerage business, diversified funding sources, and relatively low leverage, together with its support from the Mainland Government via its parent, Everbright Securities Company Limited ("Everbright Securities"), and ultimate parent, China Everbright Group Limited ("China Everbright Group"). Everbright Sun Hung Kai is the international arm of Everbright Securities and one of the key offshore subsidiaries of China Everbright Group.
Mr. Li Bingtao, CEO of Everbright Sun Hung Kai, says, "We are pleased about Moody's ratings which endorse the credit and financial strengths of Everbright Sun Hung Kai. With an all-round and diversified business model, healthy asset and business growth and profitability, and support from our parent companies, we will continue to develop our four core businesses prudently."
With its heritage in the financial industry beginning in 1969, the company demonstrates a strong presence in the retail brokerage business in Hong Kong, including wealth management and margin lending. Everbright Sun Hung Kai has considerable potential to post enhancement in its corporate finance and capital markets business, asset management, structured finance, and cross-border financial business in Hong Kong and Mainland China, citing the Moody's report.
Since the acquisition by Everbright Securities in 2015, the parents have been assisting Everbright Sun Hung Kai to access different funding sources, including secured and unsecured bank loans, revolving credits, repurchase agreements (repos), long-term loans, and syndicated loans to support the operations of Everbright Sun Hung Kai. In September 2017, Everbright Sun Hung Kai received three-year syndicated loans totaling HK$4.5 billion from different banks, which further improved the company's funding and liquidity position.
About Everbright Sun Hung Kai Company Limited
Everbright Sun Hung Kai Company Limited ("EBSHKCL") is a leading financial institution with four core businesses, Wealth Management and Brokerage, Corporate Finance and Capital Markets, Asset Management, and Investment and Structured Financing. Operating under the Everbright Sun Hung Kai brand ("EBSHK") as well as the EBSHK Direct and EBSHK Private sub-brands, EBSHKCL is a subsidiary of Everbright Securities Company Limited ("Everbright Securities", SSE: 601788, HKEX: 6178), with Sun Hung Kai & Co. Limited (HKEX: 86) as its substantial shareholder, serving individual, corporate, and institutional clients in Hong Kong, Macau, Mainland China, and the U.K.
Backed by Everbright Securities and China Everbright Group member companies coupled with its heritage in the financial industry beginning in 1969, EBSHK has emerged to be a full-fledged financial platform with excellent cross-border and global financial services. EBSHKCL, through its subsidiaries, currently has about HK$103 billion* in assets under management, custody, and/or advice. For more information, please visit www.ebshk.com.
*As of December 31, 2017
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