Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Sie sind im Begriff, von der lokalen Website für Deutschland auf die globale Website in englischer Sprache zu wechseln. Möchten Sie fortfahren?
Diesen Hinweis nicht wieder anzeigen.
Ja
Nein
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:
​​

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​​

I AGREE
Rating Action:

Moody's concludes review on ratings of Taiwanese banks

 The document has been translated in other languages

09 Jun 2015

Actions follow conclusion of methodology-related review

Hong Kong, June 09, 2015 -- Moody's Investors Service has concluded its rating reviews on Taiwanese banks. These reviews were initiated on 17 March 2015 (see press release at https://www.moodys.com/research/Moodys-reviews-global-bank-ratings--PR_321005), following the publication of Moody's new bank rating methodology.

Among the actions Moody's has taken are the following:

- Three long-term/short-term bank deposit ratings upgraded, one affirmed and six unchanged

- One long-term senior unsecured debt rating unchanged

- One subordinated debt rating affirmed

- Four baseline credit assessments (BCAs)/adjusted BCAs upgraded and six unchanged

- One long-term issuer rating of financial holding company upgraded

Moody's has also assigned Counterparty Risk (CR) Assessments to the ten banks in line with its new bank rating methodology.

Moody's has withdrawn the outlooks on all junior instrument ratings for its own business reasons. Please refer to Moody's Investors Service's Policy for Withdrawal of Credit Ratings, available on its website, www.moodys.com.

Outlooks, which provide an opinion on the likely rating direction over the medium term, are now assigned only to long-term deposit, long-term issuer and senior unsecured debt ratings.

Moody's has assigned stable outlook to the long-term deposit ratings of Chang Hwa Commercial Bank, and positive outlooks to First Commercial Bank and Hua Nan Commercial Bank Ltd, as well as assigned positive outlook to the issuer ratings of First Financial Holding Company, Ltd. Moody's has also maintained stable outlook to the long-term deposit ratings of Land Bank of Taiwan.

For more information on the new bank rating methodology, please see Moody's press release at https://www.moodys.com/research/Moodys-reviews-global-bank-ratings--PR_321005.

A list of affected ratings can be found at the end of this press release.

RATINGS RATIONALE -- KEY DRIVERS

The new bank rating methodology includes a number of elements that Moody's has developed to help accurately predict bank failures and determine how each creditor class is likely to be treated when a bank fails and enters resolution. These new elements capture insights gained from the crisis and the fundamental shift in the banking industry and its regulation.

In light of the new banking methodology, Moody's rating actions generally reflect the following considerations: 1) Moody's view of Taiwan's "Strong" macro profile; 2) the banks' strong financial profile; and 3) Moody's assessment of government support for these banks.

1) The "Strong" macro profile of Taiwan

As the banks mainly operate in Taiwan, its operating environment is heavily influenced by Taiwan and its Macro Profile is thus aligned with that of Taiwan at "Strong".

Taiwanese banks operate in an economy with a high level of wealth and comparatively dynamic growth. The banking industry also benefits from Taiwan's track record of macroeconomic stability, strong institutional strength and solid funding conditions.

Taiwan's susceptibility to event risk is moderate and mainly driven by cross-straits relations, which have improved since 2008. On the other hand, our analysis of Taiwan's macro profile also considers the risks associated with rising private-sector debt levels and a fragmented banking industry structure.

2) The banks' strong financial profile

The stable operating environment and banks' solid financial base both support Taiwanese banks' BCAs. The Taiwanese banks' solid financial base includes strong liquidity profiles, favorable asset quality, adequate capital adequacy, and improving profitability. Following today's rating actions, the weighted-average BCA of these 10 banks stands at baa2.

The creditworthiness of the Taiwan sovereign and the country's solid economic performance -- Moody's forecasts Taiwan GDP to grow 3.5% in 2015 and 3.5% in 2016 -- as well as its low unemployment level, support Moody's view of a continued, stable operating environment for Taiwanese banks. Persistently low interest rates, property price inflation and China's economic slowdown are the main fundamental challenges for Taiwanese banks over the next 12-18 months.

3) The assessment of government support

Taiwan government (Aa3 stable) support for banks has been and will continue to be high. Our view is based on the substantial government effective interests in several major banks, the government's record of maintaining confidence in the banking system in times of economic volatility, and the absence of bank deposit defaults in the past.

All ten Taiwanese banks' ratings continue to benefit from rating uplift in the range of two to seven notches.

BANK SPECIFIC DRIVERS

- Firsts Commercial Bank

The upward revision of its BCA reflects its enhanced loss absorption buffer, which will strengthen the bank's resilience against future downturns. This is reflected in First Commercial Bank's improved capitalization as well as better loan loss coverage while asset quality remains healthy since 2012.

In addition, its consistently robust funding structure and liquidity profile also contribute to its stronger credit profile, placing the bank in a comparable position to global banks with a baa3 BCA. First Commercial Bank's reliance on wholesale funding is low and it holds ample liquid assets, including Negotiable Certificate of Deposits issued by Taiwan's central bank.

The upgrade of First Commercial Bank's deposit ratings also factor in Moody's assessment that the probability of support from the Taiwanese government remains very high. Moody's bases its assessment on the bank's status as a state-controlled bank and its solid market positions with a 5%-6% loans and deposits market share in a highly fragmented system. The assessment also reflects the Taiwanese government's history of high willingness to support the banking industry, given its importance to the country's economy. Consequently, the A2 rating includes a government support uplift of four notches from the bank's baa3 adjusted BCA.

The positive outlook on First Commercial Bank's deposit ratings reflects a further improvement in its capitalization and a benign asset quality outlook. Following a planned capital injection of TWD20 billion from its parent in the third-quarter of 2015, we expect the bank's capital ratios to improve by at least 100 basis points as a result. As of December 2014, First Commercial Bank had a common equity Tier 1 ratio of 9.10% and an impaired loan ratio of 1.43%.

The bank's BCA could be upgraded if the bank is able to maintain its financial metrics at current levels, particularly with an impaired loan ratio below 3% and/or a tangible common equity (TCE) to risk-weighted assets (RWA) or core Tier 1 ratio above 9%.

First Commercial Bank's ratings are unlikely to be downgraded in the near term. Nevertheless, the bank's ratings could be downgraded if its (1) asset quality deteriorates significantly; (2) profitability weakens; (3) core Tier 1 capital falls below 7.5%; (4) credit profile weakens due to aggressive expansion in overseas or Mainland China markets; and/or (5) government support decreases, owing to a decrease in government ownership.

- Hua Nan Commercial Bank

The upward revision of its BCA reflects its enhanced loss absorption buffer, which will strengthen the bank's resilience against future downturns. This is reflected in Hua Nan Commercial Bank's stable capitalization as well as better loan loss coverage while asset quality has been healthy since 2012.

In addition, its consistently robust funding structure and liquidity profile also contribute to its stronger credit profile, placing the bank in a comparable position to global banks with a baa3 BCA. Hua Nan Commercial Bank's reliance on wholesale funding is low and it holds ample liquid assets, including Negotiable Certificate of Deposits issued by Taiwan's central bank.

The upgrade of Hua Nan Commercial Bank's deposit ratings also factor in Moody's assessment that the probability of support from the Taiwanese government remains very high. Moody's bases its assessment on the bank's status as a state-controlled bank and its solid market positions with market share of a 5%-6% loans and deposits market share in a highly fragmented system. The assessment also reflects the Taiwanese government's history of high willingness to support the banking industry, given its importance to the country's economy. Consequently, the A2 rating includes an uplift of four notches from the bank's baa3 adjusted BCA.

The positive outlook on Hua Nan Commercial Bank's deposit ratings reflects a potential further improvement in its capitalization and a benign asset quality outlook. As of December 2014, Hua Nan Commercial Bank had a common equity Tier 1 ratio of 9.02% and an impaired loan ratio of 1.54%.

The bank's BCA could be upgraded if the bank is able to maintain its financial metrics at current levels, particularly with an impaired loan ratio below 2% and/or a TCE to RWA or core Tier 1 ratio above 9%.

Hua Nan Commercial Bank's ratings are unlikely to be downgraded in the near term. Nevertheless, the bank's rating could be downgraded if its (1) asset quality deteriorates significantly; (2) profitability weakens; (3) core Tier 1 capital ratio falls below 7.5%; (4) credit profile weakens due to aggressive expansion overseas and in Mainland China; and/or (5) government support decreases, owing to a decrease in government ownership.

- Chang Hwa Commercial Bank

The upward revision of its BCA reflects its enhanced loss absorption buffer, which will strengthen the bank's resilience against future downturns. This is reflected in Chang Hwa Commercial Bank's better loan loss coverage while asset quality remains healthy since 2012.

In addition, its consistently robust funding structure and liquidity profile also contribute to its stronger credit profile, placing the bank in a comparable position to global banks with a baa3 BCA. Chang Hwa Commercial Bank's reliance on wholesale funding is low and it holds ample liquid assets, including Negotiable Certificate of Deposits issued by Taiwan's central bank.

The upgrade of Chang Hwa Commercial Bank's deposit ratings also factor in Moody's assessment that the probability of support from the Taiwanese government remains very high. Moody's bases its assessment on the bank's status as a state-controlled bank and its solid market positions with a 4%-5% market share for loans and deposits in a highly fragmented system. The assessment also reflects the Taiwanese government's history of high willingness to support the banking industry, given its importance to the country's economy. Consequently, the A2 rating includes an uplift of four notches from the bank's baa3 adjusted BCA.

Although the bank retains adequate capitalization, its capital management policies will affect its credit assessment going forward. In particular, its ownership structure, with Taishin Financial Holding Company (unrated) and the Taiwanese government as its two largest shareholders, renders it less likely to raise fresh new capital owing to the ongoing dispute between these large shareholders.

The bank's BCA could be upgraded if the bank is able to improve its capitalization, such as maintaining a common equity Tier 1 ratio to above 9%, and good profitability while retaining its current asset quality level.

Nevertheless, downward ratings pressure could arise if the bank's (1) asset quality deteriorates significantly; (2) profitability weakens; (3) core Tier 1 capital ratio falls below 7.5%; and/or (4) government support decreases, owing to a decrease in government ownership.

- Land Bank of Taiwan

The upward revision of its BCA reflects its strong liquidity position which is reflected in its solid funding structure and liquidity resources. The bank is mainly funded by customer deposits with limited reliance on market funding, as well as by holdings of high-quality liquid assets. It reported a loan-to-deposit ratio of 89.23% and liquid assets to total tangible banking assets of 22.91% at 30 December 2014.

Its BCA also takes into consideration its fair solvency profile, which includes a weak capital position and weak profitability, despite a satisfactory asset risk profile. At 31 December 2014, it reported a common equity Tier 1 capital ratio of 6.75%, an after-tax return on average assets of 0.38%, and an impaired loan ratio of 1.26%.

The bank's BCA is constrained by its high level of concentration in the real estate sector relative to its TCE. Such exposure makes it vulnerable to large losses in downturns.

The affirmation of Land Bank of Taiwan's deposit ratings is based on Moody's assessment of government-backed support from the Taiwanese government to the bank in times of stress. Despite the potential government ownership dilution, after raising new capital of TWD30 billion through an initial public offering (IPO) planned in the next two years, at this stage, Moody's still believes that its important role as a policy bank for the real estate sector will continue.

Land Bank's Aa3 deposit rating is at the same level as Taiwan's sovereign rating and is at the country ceiling. Therefore, an upgrade of its deposit ratings is unlikely.

Nevertheless, its BCA could be raised if the bank is able to raise fresh capital of TWD30 billion while maintaining its other financial metrics at current levels. A successful new rights issuance of TWD30 billion would boost the bank's core capital position by about 1.5%, thereby improving its loss-absorption capacity. In addition, the capital raise would help the bank to better pursue its business expansion strategy.

The bank's deposit ratings could be downgraded if the government further reduces its ownership or if the bank's policy role diminishes. The bank's BCA could be lowered if the bank's (1) asset quality deteriorates significantly, with rising credit costs; (2) capitalization declines, with TCE to RWA below 6%; and/or (3) financial profile weakens owing to government-directed mergers and acquisitions, or government directives to carry out unprofitable policy functions.

- Cathay United Bank

The affirmation of the bank's Basel II-compliant subordinated debt rating reflects a moderate level of Taiwan government support, leading to a one-notch uplift to Baa2 from its baa3 Preliminary Rating Assessment (PRA), which is a minus-one notch under Moody's Basic Loss Given Failure analysis from the bank's baa2 adjusted BCA.

This is based on our belief that the complexity of the financial holding structure poses contagion risk to the rest of the financial group in the case of default, as well as to the system.

Our assumption of moderate support also reflects the fact that Taiwan is not a member of the G20, the Financial Stability Board or the Basel Committee on Banking Supervision. Therefore, we do not expect Taiwan to be at the forefront of moves towards burden sharing in near-future banking resolutions.

Cathay United Bank's BCA of baa2 reflects its robust liquidity position, which is supported by its strong funding structure and ample liquidity resources. The bank is mainly funded by customer deposits with limited reliance on market funding as well as holdings of high-quality liquid assets.

Its BCA also takes into consideration its sound solvency profile, which includes a sound capital position, good asset quality as well as improving profitability.

The upgrade pressure on Cathay United Bank's ratings could emerge if the bank (1) generates sustainable net income and maintains its core capital at the current level; (2) achieves meaningful geographical diversification without pressuring its financial fundamentals and management resources; and/or (3) reduces its loan concentration on real estate-related sectors.

On the other hand, the bank's ratings could experience downward pressure if there is (1) keen price competition, which pressures its profitability; (2) significant weakening in its operating environment or more relaxed underwriting practices, resulting in asset quality deterioration; and/or (3) a decline in its TCE to RWA ratio to below 9%.

- First Financial Holding Company, Ltd.

The upgrade of its issuer ratings to A3 from Baa1 mirrors the upgrade of First Commercial Bank's adjusted BCA to baa3 from ba1.

The issuer ratings reflects First Financial's status as one of Taiwan's largest financial groups, solid financials with reasonable balance sheet leverage, and the significant market share of its flagship subsidiary, First Commercial Bank.

The company's A3 issuer ratings incorporates four notches of government support uplift from its ba1 Preliminary Rating Assessment, which is positioned one notch below the First Commercial Bank's baa3 adjusted BCA to reflect the structural subordination of a holding company's obligations compared to those of its operating subsidiaries.

First Financial's issuer ratings also incorporate our expectation of a very high degree of support from the Taiwanese government for financial holding groups in Taiwan, particularly those heavily engaged in the banking sector.

Moody's believes that the company's banking subsidiary is of significant systemic importance and is therefore likely to receive a very high level of government support in case of need. Moody's expectation is that this support would be channeled via First Financial.

The Taiwan government's control of First Financial, with an approximate 30% indirect stake through entities such as the Ministry of Finance, state-owned banks, and government funds, also increases the probability of government support in a stress situation.

The issuer ratings could be upgraded if (1) there is an upward revision of First Commercial Bank's adjusted BCA; and (2) there are acquisitions that significantly increase revenue diversification and enhance its market position without considerably raising its double leverage.

First Financial's ratings are unlikely to be downgraded in the near term. Nevertheless, the company's issuer ratings could be downgraded if (1) there is a trend of weakening financials of First Commercial Bank; (2) there is a significant reduction in the government's shareholding signifying a lower probability of government support; (3) there are aggressive acquisitions that increase leverage, thereby pressuring the company's financials.

RATIONALE FOR COUNTERPARTY RISK ASSESSMENTS

Moody's has also assigned CR Assessments to ten Taiwanese banks. CR Assessments are opinions of how counterparty obligations are likely to be treated if a bank fails, and are distinct from debt and deposit ratings in that they (1) consider only the risk of default rather than expected loss and (2) apply to counterparty obligations and contractual commitments rather than debt or deposit instruments. The CR Assessment is an opinion of the counterparty risk related to a bank's covered bonds, contractual performance obligations (servicing), derivatives (e.g., swaps), letters of credit, guarantees and liquidity facilities.

The CR Assessment takes into account the issuer's standalone strength as well as the likelihood of affiliate and government support in the event of need, reflecting the anticipated seniority of these obligations in the liabilities hierarchy. The CR Assessment also incorporates other steps authorities can take to preserve the key operations of a bank should it enter a resolution.

For Taiwanese banks, the CR Assessment is positioned, prior to government support, one notch above the Adjusted BCA and therefore above senior unsecured and deposit ratings, reflecting Moody's view that its probability of default is lower than that of senior unsecured debt and deposits. Moody's believe senior obligations represented by the CR Assessment will be more likely preserved in order to limit contagion, minimize losses and avoid disruption of critical functions. For the 10 Taiwanese banks, the CR Assessment also benefits from government support in line with Moody's support assumptions on deposits and senior unsecured debt. This reflects Moody's view that any support provided by governmental authorities to a bank which benefits senior unsecured debt or deposits is very likely to benefit operating activities and obligations reflected by the CR Assessment as well, consistent with our belief that governments are likely to maintain such operations as a going-concern in order to reduce contagion and preserve a bank's critical functions.

However, in the case of Bank of Taiwan and Land Bank of Taiwan, given their very high deposit ratings, which are aligned with the Taiwanese government bond rating at Aa3, Moody's also assigned a CR Assessment of Aa3 (cr)/P-1 (cr) to the two banks.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks published in March 2015. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

LIST OF AFFECTED RATINGS

Issuer: Bank of Taiwan

.... CR Assessment assigned at Aa3(cr)/P-1(cr)

Issuer: Cathay United Bank Co., Ltd

.... Legacy subordinated debt rating affirmed at Baa2

.... CR Assessment assigned at A1(cr)/P-1(cr)

Issuer: Chang Hwa Commercial Bank

.... BCA/Adjusted BCA upgraded to baa3 from ba1

.... Deposit ratings upgraded to A2/P-1 from A3/P-2

.... CR Assessment assigned at A1(cr)/P-1(cr)

.... Outlook for the bank is Stable

Issuer: CTBC Bank Co., Ltd.

.... CR Assessment assigned at A1(cr)/P-1(cr)

Issuer: E.Sun Commercial Bank, Ltd.

.... CR Assessment assigned at A2(cr)/P-1(cr)

Issuer: First Commercial bank

.... BCA/Adjusted BCA upgraded to baa3 from ba1

.... Deposit ratings upgraded to A2/P-1 from A3/P-2

.... CR Assessment assigned at A1(cr)/P-1(cr)

.... Outlook for the bank is Positive

Issuer: First Financial Holding Company, Ltd.

.... Issuer ratings upgraded to A3 from Baa1

.... Outlook for the company is Positive

Issuer: Hua Nan Commercial Bank Ltd.

.... BCA/Adjusted BCA upgraded to baa3 from ba1

.... Deposit ratings upgraded to A2/P-1 from A3/P-2

.... CR Assessment assigned at A1(cr)/P-1(cr)

.... Outlook for the bank is Positive

Issuer: Land Bank of Taiwan

.... BCA/Adjusted BCA upgraded to ba1 from ba2

.... Deposit rating affirmed at Aa3/P-1

.... CR Assessment assigned at Aa3(cr)/P-1(cr)

.... Outlook for the bank is Stable

Issuer: Mega International Commercial Bank Co., Ltd.

.... CR Assessment assigned at Aa3(cr)/P-1(cr)

Issuer: Taipei Fubon Commercial Bank Co Ltd

.... CR Assessment assigned at A1(cr)/P-1(cr)

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

The following information supplements Disclosure 10 ("Information Relating to Conflicts of Interest as required by Paragraph (a)(1)(ii)(J) of SEC Rule 17g-7") in the regulatory disclosures made at the ratings tab on the issuer/entity page on www.moodys.com for each credit rating:

Moody's was not paid for services other than determining a credit rating in the most recently ended fiscal year by the person that paid Moody's to determine this credit rating.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

The first name below is the lead rating analyst for this Credit Rating and the last name below is the person primarily responsible for approving this Credit Rating.

Ginger Kao
Analyst
Financial Institutions Group
Moody's Investors Service Hong Kong Ltd.
24/F One Pacific Place
88 Queensway
Hong Kong
China (Hong Kong S.A.R.)
JOURNALISTS: (852) 3758 -1350
SUBSCRIBERS: (852) 3551-3077

Stephen Long
MD - Financial Institutions
Financial Institutions Group
JOURNALISTS: (852) 3758 -1350
SUBSCRIBERS: (852) 3551-3077

Releasing Office:
Moody's Investors Service Hong Kong Ltd.
24/F One Pacific Place
88 Queensway
Hong Kong
China (Hong Kong S.A.R.)
JOURNALISTS: (852) 3758 -1350
SUBSCRIBERS: (852) 3551-3077

Moody's concludes review on ratings of Taiwanese banks
No Related Data.
© 2020 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY'S (COLLECTIVELY, "PUBLICATIONS") MAY INCLUDE SUCH  CURRENT OPINIONS. MOODY'S INVESTORS SERVICE DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY'S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY'S INVESTORS SERVICE CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS ("ASSESSMENTS"), AND  OTHER OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY'S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY'S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES  ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR  PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY'S.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER.

Moody's Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody's Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody's Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and Moody's investors Service also maintain policies and procedures to address the independence of Moody's Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody's Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy."

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody's Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations Act 2001. MOODY'S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. ("MJKK") is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody's Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody's SF Japan K.K. ("MSFJ") is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization ("NRSRO"). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​​​​​