Fitch: Eastern Broadcasting not affected

Fitch Ratings said the BB long-term foreign- and local-currency issuer default ratings with stable outlook, BBB+ national long-term rating with stable outlook, F2 (twn) national short-term rating, BB rating on the TWD50 million senior unsecured domestic bond due June 2008 and BBB+(twn) rating on the NT$300 million senior unsecured domestic bond due July 2008 for Eastern Broadcasting Co., Ltd. are not affected by the Jan. 4 filings for corporate reorganization by China Rebar Co., Ltd. and Chia Hsin Food & Synthetic Fiber Co., Ltd., both members of the Rebar Group. Rebar Group directly owns 2.18% of Eastern Broadcasting.

Fitch said any negative impact on Eastern Broadcasting will be limited as its a member of the Eastern Multimedia Group, has kept its dealings with Rebar Group at arm's length and does not make any debt guarantee or intercompany loan to Rebar Group.

Eastern Broadcasting also has indicated that it has no intention of providing future financial support to Rebar Group, the agency said. Although Eastern Broadcasting has about NT$9.34 million in deposits with two Rebar Group-related financial institutions that are facing a loss of public confidence due to the reorganization, Fitch said the deposits have been placed under government control and will be honored.

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