Fitch cuts some Taiwan banks

Fitch Ratings said it downgraded the national long-term ratings of the outstanding issuance of hybrid securities from Chinatrust Commercial Bank, Taishin Financial Holdings Co., E.Sun Financial Holding Co. Ltd. and Jih Sun Financial Holding Co., Ltd.

The downgrades follow a review of Taiwanese bank's outstanding debt issues and is in line with the agency's revised hybrid notching criteria, Fitch said.

The downgrades reflect the debt issues' going concern loss absorption feature through coupon and/or principal deferrals once the capital adequacy ratio falls below the regulatory minimum requirement of 8% (for Chinatrust) and 100% (for Taishin Holding, E.Sun Holding and Jih Sun Holding), the agency said. The downgrades bank's other ratings were not involved, the agency said.

Chinatrust's perpetual subordinated debt rating was downgraded to AA-(twn) from AA(twn). Taishin Holding's subordinated debt rating was downgraded to BBB+(twn) from A-(twn). E.Sun Holding's subordinated debt rating was downgraded to BBB+(twn) from A-(twn). Jih Sun Holding's subordinated debt rating was downgraded to BBB-(twn) from BBB(twn).

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