S&P affirms Cathay

Standard & Poor's said it affirmed Cathay Financial Holding Co. Ltd.'s A- long-term counterparty credit rating and A-2 short-term rating.

The agency also affirmed Cathay Life Insurance Co. Ltd. and Cathay United Bank Co. Ltd.'s counterparty credit rating at A, and affirmed Cathay Century Insurance Co. Ltd.'s counterparty credit rating at A-.

The outlook is stable.

The ratings on Cathay Financial reflect the group's strong market position in Taiwan's financial services industry, above-average profitability and adequate capitalization, S&P said.

These strengths are partly moderated by the challenges the group faces in expanding its banking business and improving the group's profitability amid fierce domestic competition, the agency said.

The ratings on the holding company also reflect its subordination to the group's core entities, S&P said.

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