Fitch lifts Taiwan’s Eximbank

Fitch Ratings said it upgraded the long-term issuer default rating and revised the support rating floor of the Export-Import Bank of the Republic of China (Taiwan’s Eximbank) to AA- from A+.

The outlook is stable.

The agency also said it affirmed the bank’s national long-term rating at AAA(twn) with a stable outlook.

As the policy bank effectively acts as agent of the state, no viability rating was assigned, Fitch said.

The upgrade follows a similar upgrade on Taiwan’s sovereign ratings, the agency said.

The ratings on Taiwan’s Eximbank remain aligned with those of the Taiwan sovereign, reflecting expectations of an extremely high probability of extraordinary support from the government if needed, Fitch said.

The policy bank is wholly owned by the state and is entitled to loss compensation from the state under the Export-Import Bank of the Republic of China Act, if needed, the agency explained.

The bank is tasked with promoting trade and developing the Taiwanese economy and its policy mission is important given the country’s export-dependent economic structure, Fitch said.

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