trending Market Intelligence /marketintelligence/en/news-insights/trending/guOjd9Os4tvZ43Nhlo_ykA2 content esgSubNav
Log in to other products

 /


Looking for more?

Contact Us
In This List

Fitch removes Yuanta Financial, subsidiaries from Rating Watch Negative

Blog

The Evolution of Cloud Banking: Successful Implementation & Frameworks

Blog

Banking Essentials Newsletter - April Edition

Blog

Tracking Credit Risk of a Major U.S. Retailer

Blog

Banking Essentials Newsletter: March Edition - Part 2


Fitch removes Yuanta Financial, subsidiaries from Rating Watch Negative

Fitch Ratings removed the ratings of andtwo of its subsidiaries from Rating Watch Negative following the completion ofthe company's acquisition of TaChong Bank Ltd.

The subsidiaries are Yuanta Securities Co. Ltd. and

Fitch had placed the ratings on Rating Watch Negative in August2015 over concerns that the acquisition would dilute the group's financialstrength and involve executive risk. The deal was completed March 22.

At the same time, Fitch affirmed the companies' BBB+long-term foreign-currency issuer default ratings and F2 short-termforeign-currency issuer default ratings. The national long- and short-termratings were affirmed at AA-(twn) and F1+(twn), respectively. The rating agencyalso assigned a viability rating of "bbb+" to Yuanta FinancialHoldings. The viability rating was upgraded to "bbb+"from "bb+" for Yuanta Commercial Bank.

The outlook is stable.

The ratings reflect the group's enlarged and improveddomestic and regional franchise, as well as sound financial standing.  

Fitch said it could downgrade the ratings if the company'srisk profile weakens as a result of overly aggressive acquisitions, among otherthings. A ratings upgrade, however, is unlikely given that the group is stilldeveloping its regional franchise and business diversity.