Fitch ups Hua Nan Finance to BBB-

Fitch Ratings said it affirmed Hua Nan Commercial Bank's long-term the issuer default rating at BBB+, short-term foreign-currency rating at F2, national long-term rating at AA-(twn), national short-term rating at F1(twn), individual rating at C/D and support rating at 2. The agency also said it upgraded Hua Nan Bills Finance Corp.'s long-term issuer default rating to BBB- from BB+, short-term foreign currency to F3 from B, national long-term rating to A(twn) from A-(twn), national short-term rating to F1(twn) from F2(twn) and support rating to 2 from 3. Its individual rating was affirmed at D/E. Both are subsidiaries of Hua Nan Financial Holding Co.

The outlook is stable.

The ratings reflect the company's sound overall asset quality, established market position, importance to the local banking sector and expected strong government support in event of need, Fitch said.

The upgrade reflects Hua Nan Bills Finance's stronger likelihood of business and liquidity support from the parent company and the bank, however its individual rating reflects weak asset quality, increasing diversity of its revenue source and its asset/liability maturity mismatch, the agency said.

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