S&P: Standard Chartered Bank unchanged

Standard & Poor's said its ratings on Standard Chartered Bank (A+/stable/A-1) were not affected by the bank's proposed acquisition of Union Bank of Pakistan (not rated).

The agency said that the proposed acquisition would be wholly cash funded, but the impact on the bank's capital ratios is modest in the context of its strong performance in the first half of 2006.

S&P said it estimates that, on a wholly owned basis, the bank's adjusted common equity-to-risk-weighted assets ratio would fall by about 35 basis points to about 5.7% as a result of the acquisition, adding that this level of capitalization is weaker than many other Asian banks, but is still higher than at end-2005 and the expected recovery in capital ratios is not materially delayed.

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