Fitch: Taishin bonds A-(twn)

Fitch Ratings said it assigned a final national long-term rating of A-(twn) on Taishin Financial Holdings Co.'s proposed NT$5.2 billion seven-year subordinated bonds.

The bonds carry a fixed coupon rate of 2.2% and will mature Aug. 5, 2018. The proceeds will be used for future refinancing purposes and maintaining the company's capitalization, Fitch said.

The subordinated bonds are rated two notches below Taishin Holdings' national long-term rating of A+(twn), which is in line with the agency's revised hybrid notching criteria.

The ratings reflect their loss absorption feature through deferrals of coupon and principal payments once Taishin Holdings' capital adequacy ratio falls below the regulatory minimum requirement of 100%, Fitch said.

At the end of 2010, Taishin Holdings' capital adequate ratio was 119.34%, the agency said.

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