Fitch Ratings upgraded the viability rating of Standard Chartered Bank (Taiwan) Ltd. to "bbb" from "bbb-" on expectations that the bank will benefit from improved stability in its earnings and profitability.
The rating agency said Sept. 5 that it affirmed the bank's long- and short-term issuer default ratings at A and F1, respectively. The bank's national long- and short-term ratings were affirmed at AA+(twn) and F1+(twn). The outlook is stable.
The rating agency said it expects the bank maintain sound capitalization and steady asset quality as it rebuilds its loan book. The bank increased its loans by around 6% during 2018 after years of loan contraction from 2013 to 2017, the agency added.
The affirmation came after Fitch took a similar action on the bank's immediate parent, Standard Chartered Bank, and ultimate parent, Standard Chartered PLC. The ratings of Standard Chartered Bank (Taiwan) reflect an extremely high probability of support from the parent.
