Fitch may cut Waterland

Fitch Ratings said it placed Waterland Financial Holdings and subsidiaries International Bills Finance Corp. and Waterland Securities Corp. on Rating Watch negative.

Waterland Financial's long-term foreign-currency issuer default rating of BBB-, short-term foreign-currency issuer default rating of F3, national long-term rating of A(twn) and national short-term rating of F1(twn) were placed on negative watch.

International Bills' long-term foreign-currency issuer default rating of BBB, short-term foreign-currency issuer default rating of F3, national long-term rating of A+(twn) and national short-term rating of F1(twn) were placed on negative watch.

Waterland Securities' long-term foreign-currency issuer default rating of BBB-, short-term foreign-currency issuer default rating of F3, national long-term of A(twn) and national short-term rating of F1(twn) were placed on negative watch.

The negative watch reflects a view that Waterland's acquisition of MetLife Taiwan, the Taiwan operations of U.S. life insurer MetLife Inc., will somewhat strain Waterland Financial's capital strength, Fitch said.

Waterland Financial plans to fund half the investment by its own cash and the other half by bank borrowings, without any increase in its equity. This will negatively impact the company's credit profile, the agency said.

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