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Fitch Ratings-Taipei/Hong Kong-18 January 2012: Fitch Ratings has placed Taiwan Cooperative Bills Finance Corporation's (TCBFC) Long-Term Foreign Currency Issuer Default Rating (IDR), National Long-Term Rating and Support Rating on Rating Watch Positive (RWP). A full rating breakdown is provided below.
The RWP follows the establishment of Taiwan Cooperative Financial Holding Company (TCFHC), under which TCBFC is now a direct operating subsidiary. TCBFC will benefit from stronger group support as, under the Financial Holding Company Act, TCFHC is now obliged to assist its subsidiary if falls into financial difficulties.
Fitch will resolve the RWP once there is clarity on TCFHC's future relationship and linkages with the Taiwanese government, its business strategy and capital structure. This will allow Fitch to form a credit assessment of TCFHC and, consequently, the level of support it can provide to TCBFC.
TCBFC was originally 94.76%-owned by Taiwan Cooperative Bank (TCB, rated 'A-'/Stable). In December 2011, TCFHC acquired 100% ownership of TCBFC after it swapped with TCB and the minority shareholders each TCFHC share for every 3.08 TCBFC shares.
TCBFC's rating actions:
Long-Term IDR 'BBB-'; on RWP
Short-Term IDR 'F3'; on RWP
National Long-Term 'A(twn)'; on RWP
National Short-Term 'F1(twn)'; on RWP
Support Rating: '2'; on RWP
Support Rating Floor affirmed at 'No Floor'
Contacts:
Primary Analyst
Jenifer Chou
Associate Director
+886 2 8175 7605
Fitch Ratings Limited, Taiwan Branch
Suite 1306, 13F, 205, Tun Hwa N. Rd., Taipei
Secondary Analyst
Cherry Huang
Director
+886 2 8175 7603
Committee Chairperson
John Miles
Senior Director
+61 2 8256 0344
Media Relations: Wai Lun Wan, Hong Kong, Tel: +852 2263 9935,
Email:
wailun.wan@fitchratings.com.
Note to editors: Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(twn)' for National ratings in Taiwan. Specific letter grades are not therefore internationally comparable.
Additional information is available at www.fitchratings.com. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings. The issuer did not participate in the rating process, or provide additional information, beyond the issuer's available public disclosure.
Applicable criteria, 'Global Financial Institutions Rating Criteria', dated 16 August 2011, and 'National Ratings Criteria ', dated 19 January 2011, are available at www.fitchratings.com.
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
National Ratings Criteria
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