trending Market Intelligence /marketintelligence/en/news-insights/trending/QTxWsPq9Gh75RBaMCJ5F1g2 content esgSubNav
In This List

S&P lowers outlook on CTBC Financial to stable

Blog

Global Capital Markets & SPAC Activity – H1 2021

Blog

Banking Essentials Newsletter: July Edition - Part 3

Blog

Banking Essentials Newsletter: July Edition - Part 2

Blog

Anticipate the Unknown Go Beyond Fundamentals to Uncover Early Signs of Private Company Credit Deterioration


S&P lowers outlook on CTBC Financial to stable

S&P Global Ratings lowered its outlook on to stable from positive on the back of moderating capitalization.

S&P believes the group's capitalization will deteriorateto satisfactory from strong given the high growth of its life insurance arm inthe first half of 2016. The group's capitalization is also sensitive to cashdividend distribution in the holding company, the rating agency said.

At the same time, S&P affirmed the company's issuercredit ratings at BBB/A-3, but lowered its Greater China regional scale ratingsto cnA/cnA-2 from cnA+/cnA-1.

S&P could still raise the consolidated profile and CTBCFinancial's rating if the company is able to maintain strong capitalization viaa prudent business strategy and good earnings retention.

The agency could lower the group credit profile and thecompany's rating if its subsidiaries pursue overly aggressive expansion withoutadequate capital planning or a risk management mechanism, resulting in a weakercapitalization.

S&P Global Ratingsand S&P Global Market Intelligence are owned by S&P Global Inc.