Fitch rates Taishin bond A-(twn)

Fitch Ratings said it assigned a final national long-term rating of A-(twn) to Taishin Financial Holdings Co.'s proposed seven-year NT$2.7 billion subordinated bond issue.

The company's subordinated bonds carry a floating coupon rate and will mature on Jan. 27, 2018.

The new capital raising is mainly for refinancing purposes and maintaining adequate capitalization.

The subordinated bonds are rated two notches below Taishin Holdings' national long-term rating, Fitch said.

The rating on the subordinated bonds mainly reflects the debt issue's feature of loss absorption through coupon and principal deferrals once Taishin Holdings' capital adequacy ratio falls below the regulatory minimum requirement of 100%, the agency said.

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