Noah Holdings' Outlook Upgraded to Stable by S&P Global Ratings; Investment Grade "BBB-" Rating Affirmed
"The stable outlook reflects our expectation that Noah's revenue stream and AUM flow has stabilized and will be on a growth trajectory at least over the next 24 months. The stable outlook also reflects reduced litigation risk associated with Camsing incident," stated S&P in its research update. "The Camsing incident is not as strong a credit factor now as when we revised the outlook to negative."
As a leading and pioneer wealth management service provider in
S&P mentioned that the expansion in Noah's ultra-high-net-worth client base indicated investor confidence in the Company. Noah's active clients number, including mutual funds, grew 65.4% year-on-year to record a historical high of almost 28,000 in the first quarter of 2021.
"Proactive investments and customized product distribution with focus on high-net-worth clients are better positioning Noah to compete with online channels as the sector becomes more saturated," commented S&P. The Company announced its strategic equity investment in US-based iCapital Network on
"Noah should be able to navigate its growth with an appropriate strategy and risk management system, and the company meets our assessment of management and governance at fair. The Company has limited financial liabilities and we do not anticipate it will incur any over the next 12 months. We continue to assess the company's financial risk as minimal," concluded S&P.
ABOUT NOAH HOLDINGS LIMITED
Noah's wealth management business primarily distributes private equity, public securities and insurance products denominated in RMB and other currencies. Noah delivers customized financial solutions to clients through a network of 1,246 relationship managers across 82 cities in mainland China, and serves the international investment needs of its clients through offices in Hong Kong, Taiwan, United States, Canada and Singapore. The Company's wealth management business had 384,021 registered clients as of March 31, 2021. As a leading alternative multi-asset manager in China, Gopher Asset Management manages private equity, real estate, public securities, credit and multi-strategy investments denominated in Renminbi and other currencies.
For more information, please visit Noah at ir.noahgroup.com.