Fitch Ratings revised the ratings outlook on Taiwan-based Taishin Financial Holding Co. Ltd. and unit Taishin Securities Co. Ltd. to stable from negative.
The rating agency said Sept. 5 that the outlook on Taishin Financial's Taishin International Bank Co. Ltd. unit remains stable. It affirmed the BBB long- and F3 short-term issuer default ratings of both Taishin Financial and Taishin Securities, as well as the BBB+ and F2 ratings of Taishin International Bank. It also affirmed other ratings of the three companies.
The outlook revision on Taishin Financial reflects Fitch's expectation that the company's common-equity double-leverage ratio of 147% as of March 31, or an estimated 117% excluding its investment in Chang Hwa Commercial Bank Ltd., is unlikely to rise significantly in the absence of future mergers and acquisitions. Meanwhile, the ratings and outlook on Taishin Securities are aligned with that of Taishin Financial, and reflect its small size.
The affirmation of Taishin International Bank's ratings reflects its well-established consumer banking franchise, strong presence in digital banking, stable profitability and improving capitalization.
