S&P: Bank SinoPac unchanged

Standard & Poor's said its ratings on Bank SinoPac (BBB/stable/A-2) would not be immediately affected by a decision by the regulator to suspend the bank's new factoring business for six months from Jan. 1 as the impact on the bank's overall credit profile is expected to be limited.

Although factoring is one of Bank Sinopac's core businesses, its profit contribution has been less than 10% of annual pre-provision profits in recent years and the bank can still generate profits from its outstanding factoring exposure, S&P noted.

In addition, the agency said the bank can retain clients by leveraging its close relationship with International Bank of Taipei with which it will merge in 2006.

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