S&P ups Farmers Bank of China view to positive

Standard & Poor's said it revised its outlook on Farmers Bank of China to positive from stable following an announcement that the bank will merge with Taiwan Cooperative Bank Ltd. (BBBpi/--/--).

S&P also said it affirmed its BB+ long-term counterparty credit rating and B short-term counterparty credit rating on Farmers Bank and its BBBpi rating on Taiwan Cooperative Bank.

The outlook revision reflects the stronger credit profile of Taiwan bank and the expectation that it, as the surviving entity, will maintain a credit profile commensurate with its existing profile.

The market position of the surviving entity is likely to strengthen as a result of the merger, S&P said.

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