Fitch ups Eastern Broadcasting

Fitch Ratings said it upgraded the ratings of Eastern Broadcasting Co., Ltd. and simultaneously removed them from Rating Watch positive, where they were placed in May.

The agency upgraded the company's long-term foreign- and local-currency issuer default ratings to BB from BB-, national long-term rating to BBB+(twn) from BBB(twn), national short-term rating to F2(twn) from F3(twn) and the NT$50 million and NT$300 million senior unsecured national bonds maturing in June and July 2008, respectively, to BB from BB- and to BBB+(twn) from BBB(twn).

The outlook is stable.

The agency said the company was placed on positive watch following the launch of a private offering of common shares, which was partly used to pay down debt.

The ratings reflect the company's sustainable market leadership position in the cable television business, the continuing stability of the cable TV channel fee income and enhanced revenue mix from ongoing business diversification, the agency said.

These strengths are tempered by the competitive risks in Taiwan's fragmented cable television advertising market, where growth has weakened by 4% in the first half of 2006, Fitch said.

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