Fitch cuts Taishin group view to negative

Fitch Ratings said it revised the outlook on Taishin Financial Holdings Co. and its subsidiaries, Taishin International Bank, Taiwan Securities Co., Ltd. and Taishin Bills Finance Corp. to negative from stable and affirmed all their ratings. The agency also affirmed the ratings of Chang Hwa Bank with a stable outlook.

Fitch said it revised the outlook on the Taishin Group to negative as the group's pre-provision profitability has been in steady decline since 2006. It is expected to fall further in the second half of 2008 and 2009.

Meanwhile, the holding company's high double leverage and Taishin International Bank's inadequate reserves against unsecured consumer lending leaves the group vulnerable to adverse developments in the economy, the agency said.

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