Fitch cuts Taishin Bills to C/D

Fitch Ratings said it affirmed the ratings of Taishin Financial Holdings Co. and its subsidiaries, Taishin International Bank, Taiwan Securities Co., Ltd. and Chang Hwa Bank. Fitch also said it downgraded the individual rating of Taishin Bills Finance Corp. to C/D from C and affirmed the rest of its ratings. The outstanding debt issues of the group also are affirmed.

Taishin Financial's long-term foreign-currency issuer default rating was affirmed at BBB-, short-term foreign-currency issuer default rating at F3, national long-term rating at A(twn), national short-term rating at F1(twn), individual rating at C, support rating at 5 and subordinated debt rating at A-(twn). The outlook is stable.

Taishin International Bank's long-term foreign-currency issuer default rating was affirmed at BBB, short-term foreign-currency issuer default rating at F3, national long-term rating at A+(twn), national short-term rating at F1(twn), individual rating at C, support rating at 3 and support rating floor at BB+. The outlook is stable.

Taiwan Securities' long-term foreign-currency issuer default rating was affirmed at BBB-, short-term foreign-currency issuer default rating at F3, national long-term rating at A(twn), national short-term rating at F1(twn), individual rating at C/D and support rating at 3. The outlook is stable.

Taishin Bills Finance's long-term foreign-currency issuer default rating was affirmed at BBB-, short-term foreign-currency issuer default rating at F3, national long-term rating at A(twn), national short-term rating at F1(twn), support rating at 3 and senior unsecured debt rating at A (twn). The outlook is stable.

Chang Hwa Bank's long-term foreign-currency issuer default rating at BBB+, short-term foreign-currency issuer default rating at F2, national long-term rating at AA-(twn), national short-term rating at F1(twn), individual rating at C/D, support rating at 2 and support rating floor at BBB+.

The holdings company reported return on average earnings of -18.8%, excluding minority interests in 2006, as large provision expenses and losses on non-performing loan sales at Taishin International Bank, its wholly-owned bank subsidiary, weighed on its profitability, Fitch said.

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