Fitch affirms Leonteq’s Investment Grade Rating

Leonteq AG has announced that Fitch revises its outlook from Positive to Stable and affirms Leonteq’s investment grade rating at “BBB-”.

The rating agency Fitch Ratings has revised the outlook from Positive to Stable and affirmed the long-term issuer default rating (IDR) of “BBB-” for Leonteq AG, Leonteq Securities AG and Leonteq Securities AG (Guernsey Branch), according to a press release.

The outlook revision primarily reflects Fitch’s view that because of material deterioration in Leonteq’s operating environment due to the coronavirus crisis, it has become less likely that Leonteq will reach rating upgrade triggers previously identified by Fitch in the next three to six months.

According to Fitch, the affirmation of the long-term IDRs assigned to Leonteq reflect its sound financial metrics, including its adequate and improving capitalisation, its moderate credit risk exposure and comprehensive liquidity management, as well as its sophisticated structured products issuance platform and sound risk management systems. Fitch concludes that these have allowed Leonteq to establish a solid track record in generating fairly stable revenues and adequate underlying profitability.