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Fitch upgrades Taiwan's SinoPac Financial, 2 units

Fitch Ratings said Sept. 5 that it upgraded the issuer default ratings of Taiwan-based SinoPac Financial Holdings Co. Ltd. and its subsidiary Bank SinoPac Co. Ltd. to BBB+ from BBB due to the bank's improving company profile and reduced risk appetite, particularly in relation to its China strategy.

The rating agency also upgraded the group's and the bank's national long-term ratings to AA-(twn) from A+(twn) and their viability ratings to "bbb+" from "bbb." Meanwhile, the agency affirmed the companies' short-term issuer default ratings at F2 and their national short-term ratings at F1+(twn).

At the same time, Fitch upgraded the long- and short-term issuer default ratings of Bank SinoPac (China) Ltd. to BBB and F2, respectively, from BBB- and F3.

The outlooks on all the three entities are stable.

Fitch said Bank SinoPac has steadily regained its deposit market share to 3.3% by end-April, compared with about 3% in mid-2018, and its share in foreign-currency deposits has risen to 4.4% from 3.5% over the same period. Further, the upgrade of SinoPac Financial's ratings with a stable outlook is in line with the rating action on Bank SinoPac, and Fitch's expectation that the group will maintain moderate leverage at the holding-company level.