S&P: Cathay Financial unaffected

Standard & Poor's said that its ratings on Cathay Financial Holding Co. Ltd. (BBB+/stable/A-2) would not be affected by the company's recent purchase of a 31.6% equity stake in Lucky Bank, a small bank in central Taiwan, at a total cost of NT$1.6 billion.

The investment, which represents just 1% of Cathay Financial's total shareholders' funds of NT$188.6 billion as at the end of March 2005, is not expected to significantly affect the group's financial profile despite Lucky Bank's relatively weak credit profile, the agency said.

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