Fitch lifts Hua Nan Commercial

Fitch Ratings said it upgraded Hua Nan Commercial Bank's long-term issuer default rating to A- from BBB+ and national long-term rating to AA(twn) from AA-(twn).

The agency also said it upgraded the bank's viability rating to BBB from BBB-.

The outlook is stable.

The upgrades reflect the increased flexibility that the Taiwan sovereign has to support state-controlled bank, if needed, Fitch said.

The ratings now reflects the bank’s enhanced credit strength from stronger state support, which is now more comparable with AA(twn) domestic peers, the agency said.

The bank’s ratings are based on the strong propensity of the state to support it, Fitch said.

The state has a controlling 33% stake in the bank’s sole parent, Hua Nan Financial Holding Co., the agency said, and the group has long-term links with the state and is of significant systemic importance.

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