Fitch: Chinatrust unchanged

Fitch Ratings said Chinatrust Financial Holding Co.'s proposed all cash acquisition of MetLife Taiwan has no immediate impact on the ratings of Chinatrust Group, including the non-operating holding company and its subsidiaries.

Chinatrust Financial Holding has a long-term foreign-currency issuer default rating of A, short-term foreign-currency issuer default rating of F1, national long-term rating of AA+(twn) and national short-term rating of F1+(twn).

Chinatrust Commercial Bank has a long-term foreign-currency issuer default rating of A, short-term foreign-currency issuer default rating of F1, national long-term rating of AA+(twn), national short-term rating of F1+(twn), perpetual cumulative New Taiwan dollar-denominated subordinated bonds' national long-term rating of AA-(twn), perpetual non-cumulative dollar-denominated subordinated bonds' long-term foreign-currency rating of BBB+, subordinated bonds' long-term foreign-currency rating of A- and national long-term rating of AA(twn) and senior unsecured bonds' national long-term rating of AA+(twn).

Chinatrust Securities Co. has a long-term foreign-currency issuer default rating of A-, short-term foreign-currency issuer default rating of F1, national long-term rating of AA(twn) and national short-term rating of F1+(twn).

The transaction is scheduled to be completed in the second half of 2011, subject to regulatory approvals, Fitch said.

The agency said it expects the acquisition to only modestly increase financial leverage at the holding company level with limited impact on the group's financial profile, while the ratings of Chinatrust Group have already factored in the possibility that it will pursue modest diversification opportunities.

The acquisition is likely to facilitate the group's strategy of diversifying revenue and fee generation capability, Fitch said, although this may bring about challenges.

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