Fitch: Waterland unchanged

Fitch Ratings said Waterland Securities Corp.'s planned acquisition of Paradigm Asset Management Co., Ltd. has no impact on the ratings of the Waterland group, as the deal has limited implications for the financial profiles of the company and its parent company, Waterland Financial Holdings.

Waterland Financial Holdings has a 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). The outlook is stable.

International Bills Finance Corp. has a 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). The outlook is stable.

Waterland Securities Corp. has a 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). The outlook is stable.

The acquisition is priced at NT$647.2 million. The transaction is expected to be finalized by the end of the first quarter of 2011. The acquisition is part of Waterland group's strategy to increase its earnings contribution from equity-related operations, Fitch said.

Waterland aims to diversify and improve its overall business franchise, the agency said, and the acquisition will help it gradually improve its capability in product offerings, as well as the productivity and franchise of its retail stock brokerage, the agency added.

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