Fitch rates E. Sun bonds BBB+(twn)

Fitch Ratings said it assigned a BBB+(twn) national long-term rating to E. Sun Financial Holding Co. Ltd.'s proposed seven-year NT$2 billion subordinated debt issue. The company's subordinated bonds carry a fixed-coupon rate and will mature in 2017. This issue is rated two notches below E. Sun's national long-term rating of A(twn).

The outlook is stable.

The rating mainly reflects the debt issue's feature of loss absorption through coupon and principal deferrals once the company's capital adequacy ratio falls below the regulatory minimum requirement of 100%, Fitch said.

At end of March, its capital adequacy ratio was 114.21%. The equity credit assigned to this subordinated bond is 25%, the agency said.

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