S&P: SinoPac outlook stable

Standard & Poor's said it revised the outlook on SinoPac Holdings to stable from negative and affirmed its BBB- long-term and A-3 short-term counterparty credit ratings.

"The outlook revisions mainly reflect the group's stabilized earnings and our expectation that its overall profitability should gradually recover to historical levels over the next two years," S&P analyst Patty Wang said in a statement.

"Stabilized macroeconomic conditions have alleviated some pressure on the group's earnings. We expect the net interest margins of the group's banking subsidiary, Bank SinoPac, to moderately improve over the next two years back to the historical level."

Ratings reflect the view that the group's funding profile and asset quality are adequate, while capitalization remains satisfactory, the agency said.

Counterbalancing factors include the company's mediocre profitability and scale disadvantage, the agency noted.

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