Fitch gives SinoPac bond A+

Fitch Ratings said it gave an expected A+(twn) to SinoPac Securities Corp.’s planned NT$1 billion subordinated corporate bond. The bond is expected to have a tenor of seven to 10 years.

Concurrently, the agency assigned SinoPac a BBB+ issuer default rating and a AA-(twn) national rating. The issuer ratings are equalized with those of its sole parent, SinoPac Financial Holdings Co. Ltd., reflecting the view of continued parental support, if needed, Fitch said.

“The expected rating on SPS's proposed Taiwan dollar unsecured subordinated bond is one notch below its national long-term rating to reflect a higher loss-severity risk relative to senior unsecured obligations,” the agency said in a press release.

The proceeds are expected to be used to strengthen the company's liquidity and capital position.

The outlook is stable.

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