Fitch revises Capital Securities view to negative

Fitch Ratings said it revised the outlook on Capital Securities Corp.'s long-term issuer default rating of BBB- and national long-term rating of A(twn) to negative from stable and affirmed the ratings.

The revision reflects heightened uncertainty in Taiwan's securities industry arising from the coronavirus pandemic. It also reflects the associated pressure on Capital Securities' profitability amid potential proprietary trading losses due to increased capital-market volatility as well as lower brokerage income over the medium term.

The rating affirmation reflects Fitch's view Capital Securities has adequate capital buffers to withstand the immediate shock brought about by the pandemic.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.