Fitch affirms Shin Kong

Fitch Ratings said it affirmed ratings on the Shin Kong Group, including Shin Kong Life Insurance Company Ltd.'s insurer financial strength rating at BBB+ and national insurer financial strength rating at AA-(twn); Shin Kong Financial Holding Co. Ltd.'s long-term issuer default rating at BBB-, short-term rating at F3, national long-term at A(twn) and national short-term rating at F1(twn); Taiwan Shin Kong Commercial Bank's long-term issuer default rating at BBB-, short-term rating at F3, national long-term rating at A(twn), national short-term rating at F1(twn), individual rating at D and support rating at 2; and Shin Kong Securities long-term issuer default rating at BB+, short-term rating at B, national long-term rating at A-(twn), national short-term rating at F2(twn), individual rating at D and support rating at 3.

The outlook is positive.

The ratings reflect the group's prudent capitalization, strong market presence and increased, but still manageable, risks in invested assets, Fitch said.

However, the agency said its primary concerns include on-going currency and duration mismatches and a heavy reliance on volatile investment-related income against the backdrop of Taiwan's low interest rate environment.

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