S&P: Cathay unaffected by securities change

Standard & Poor's said that its ratings on Taiwan-based Cathay United Bank Co. Ltd. (A/stable/A-1) would be unaffected by a decision by the Taiwan Stock Exchange to switch securities clearing to Taiwan's central bank from the beginning of 2007.

The decision is not expected to affect the bank's funding profile, the agency said. Given its success in building strong business relationships with its customers, investors are likely to maintain their settlement accounts, which are an important source of low-cost funding. S&P said it expects the bank to maintain its leading position in the provision of settlement accounts.

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