Futu Holdings Limited ("Futu") (Nasdaq: FUTU), a leading tech-driven online brokerage and wealth management platform, is pleased to announce that it has obtained a "bbb" GCP (group credit profile) and a "BBB-" investment grade long-term issuer credit rating from S&P Global Ratings ("S&P"). The outlook on the long-term rating is stable.
S&P expects that Futu will maintain its competitive position in the online brokerage industry and sustain its strong capitalization and adequate risk controls, along with business growth. Futu has thus become the first online brokerage in APAC to earn an international rating and the first Hong-Kong-based broker to obtain a standalone investment grade issuer rating.
Futu has a leading market position in Hong Kong as a retail-focused online broker and is well-positioned to take advantage of its strong brand recognition to expand into overseas markets, such as the U.S. and Singapore with its renowned App, moomoo. Since officially launching its business in Singapore on March 8, 2021, Futu has quickly become a highly recognized tech-driven online brokerage platform for local investors. It has secured more than 220,000 registered users and more than 100,000 paying clients in Singapore in less than three months.
Futu’s rating is well-positioned by its strong RAC (risk-adjusted capital), and S&P anticipates that Futu will sustain the capital adequacy to support its rapid growth.
"We are thrilled that Futu has become the first Hong Kong-based brokerage to receive a standalone investment grade rating from S&P, which acknowledges our strong business development from the mainstream international rating agencies," says Mr. Leaf Hua Li, Futu’s Founder, Chairman, CEO & Chairman of the Technology Committee. "This recognition enables Futu to lay a solid foundation on its bargaining power to reduce financing costs in international capital markets. Leveraging its cutting-edge technology, R&D capabilities and one-stop online service platforms, Futubull and moomoo App. Futu has built a comprehensive and efficient risk control system, while bringing global investors a seamless and sophisticated product experience." Mr. Li adds, "Looking forward, Futu will continue to expand its client base, enrich its product portfolio and improve its tech-driven service capabilities, while maintaining its prudent risk management framework. Futu will also further develop its business in Hong Kong and steadily implement an international strategy in order to become a global financial service platform with significant influence."