Fitch: Taiwan Cooperative Bills on positive watch

Fitch Ratings said it placed on Rating Watch positive Taiwan Cooperative Bills Finance Corp.'s long-term foreign-currency issuer default rating of BBB-, short-term issuer default rating of F3, national long-term rating of A(twn) and national short-term rating of F1(twn).

The positive watch follows the establishment of Taiwan Cooperative Financial Holding Co., under which Taiwan Cooperative Bills is now a direct operating subsidiary, Fitch said.

It will benefit from stronger group support as Taiwan Cooperative Financial is now obliged to assist its subsidiary if it falls into financial difficulties, Fitch said.

Fitch will resolve the watch once there is clarity on Taiwan Cooperative Financial's future relationship and linkages with the Taiwanese government, its business strategy and capital structure, the agency said.

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