Fitch rates TZ Tech bonds AA-(twn)

Fitch Ratings said it assigned TZ Tech Co., Ltd. a national long-term rating of B+(twn), along with an expected national rating of AA-(twn) to the NT$80 million three-year zero-coupon senior secured convertible bonds to be issued in October 2008. The final rating is contingent on the receipt of final documents.

The outlook is stable.

The rating reflects the company's small operating scale, concentrated revenue mix and weak profitability, Fitch said. The rating also considers its management's short track record and the company's recent loss of the industrial design and mold business, the agency said.

Nevertheless, Fitch said it expects the connector molds that TZ Tech designed previously form a good foundation for to the company to enter the connector manufacturing business.

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