S&P ups Chang Hwa Commercial

S&P said it raised its issuer credit ratings on Chang Hwa Commercial Bank Ltd. to A- from BBB+.

“The upgrade of Chang Hwa Bank reflects our view of the bank’s strengthened capitalization, which we now assess as strong compared to adequate previously. The bank has issued a total of New Taiwan dollar (NT$) 15.96 billion hybrid perpetual non-cumulative unsecured subordinated debt over the past 18 months. We believe this debt has intermediate equity content due to its loss-absorbing characteristic. These capital issuances have raised the bank’s risk-adjusted capital (RAC) ratio before diversification to 10.8% in 2018 and 11.7% in June 2019, compared with 10.2% in 2017,” said S&P in a press release.

The outlook is stable.

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