Fitch lifts two E.Sun ratings

Fitch Ratings said it upgraded E.Sun Financial Holding Co.'s individual rating to C from C/D and E.Sun Securities Corp.'s individual rating to C/D from D.

The other ratings were affirmed, including E.Sun Financial's BBB- long-term foreign-currency issuer default rating, F3 short-term foreign-currency issuer default rating, A(twn) national long-term rating, F1(twn) national short-term rating, 5 support rating, "No Floor" support rating floor and BBB+(twn) subordinated debt rating.

The outlook is stable.

The agency said the upgrade of E.Sun Financial's individual rating largely reflects the influence of E.Sun Commercial Bank, which accounts for more than 99% of group assets and significantly contributed to the group's resilient and gradually enhanced franchise earnings and stable credit profile amid the challenging operating environment, although it is noted that the franchise still is small and profitability is relatively weak compared with its regional peers.

The upgrade of E.Sun Securities' individual rating reflects its comparably less volatile profitability and more prudent balance sheet integrity over the past decade as compared with its similarly rated peers and its increased scale benefit from its expanding franchise, Fitch said.

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