S&P raises Fubon

Standard & Poor's said it raised its long-term counterparty credit rating on Fubon Financial Holding Co. Ltd. to BBB+ from BBB and short-term rating to A-2 from A-3, reflecting the strengthened credit position of the overall Fubon group based on the view that regulatory conditions in Taiwan now permit a higher degree of resource movement between members of financial groups.

The outlook is stable.

At the same time, the long-term counterparty credit rating on Taipei Fubon Commercial Bank Co. Ltd. was raised to A- from BBB+ and the long-term counterparty credit rating on Fubon Bank Hong Kong Ltd. was raised to BBB+ from BBB and the short-term rating was raised to A-2 from A-3 while the long-term term counterparty credit ratings and financial strength ratings on Fubon Insurance Co. Ltd. were lowered to A from A+.

The ratings on Fubon FHC continue to reflect the Fubon group's good business position, the diversity of its business units and improving synergies among its members, S&P said, noting these positive factors are moderated by a competitive environment in which some group members with weaker stand-alone risk profiles are likely to face operating pressure.

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