S&P puts SCB Taiwan on negative watch

Standard & Poor’s said it placed the A/A-1 issuer credit ratings on Standard Chartered Bank (Taiwan) Ltd. (SCB Taiwan) on CreditWatch with negative implications.

The agency also said it placed the cnAA+ long-term Greater China regional scale rating on CreditWatch with negative implications and affirmed its cnA-1 short-term rating.

The negative watch reflects the recent negative watch placement for its parent company, Standard Chartered Bank, due to changes in the United Kingdom’s banking laws, S&P said.

The agency also said it considers that extraordinary government support will likely become less predictable in the near term under the new legislation, but that important issues have not yet been resolved.

SCB Taiwan remains a highly strategic subsidiary to Standard Chartered Bank, S&P said, and its ratings reflect implicit support from the parent group. That is why SCB Taiwan’s ratings will move in tandem with those on its parent company.

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