Fitch affirms Standard Chartered

Fitch Ratings said it affirmed Hong Kong-based Standard Chartered Bank Ltd.'s ratings at issuer default A+ with a stable outlook, short-term F1, individual B and support 3.

The rating action follows the announcement by its parent, Standard Chartered plc, that the group has agreed to acquire a 80.86% interest in Pakistan-based Union Bank Ltd. for $413 million in cash.

Under Pakistan law, the group is also required to make a mandatory public offer for the remaining shares of Union Bank before the acquisition can be completed.

Fitch said the acquisition fits Standard Charter's business profile well. While Pakistan represents one of the higher risk areas of its operations, Fitch said the bank's long experience of managing risks in emerging markets and the acquisition is relatively small in the context of the wider group.

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