S&P upgrades First Financial

Standard & Poor’s said it raised the long-term issuer credit ratings and long-term Greater China regional scale ratings on First Financial Holding Co. Ltd. and First Commercial Bank Ltd. and affirmed all of its short-term ratings.

The outlook is stable.

S&P upgraded First Financial’s long-term rating to BBB from BBB- and the short-term rating was affirmed at A-3. The long-term Greater China regional scale rating was raised to cnA from cnA- and the short-term rating was affirmed at cnA-2.

The long-term issuer credit rating of First Commercial Bank was raised to A- from BBB+ and the short-term rating was affirmed at A-2. The long-term Greater China scale rating on the bank was raised to cnAA from nAA- and the short-term rating was affirmed at cnA-1.

The upgrades reflect a view that the bank’s capitalization has improved to a strong level after its parent, First Financial, completed a new rights issue in September 2015, S&P said.

The agency also said it believes First Commercial Bank should be able to maintain strong capitalization, even considering its business expansion plan over the next two years.

The company raised NT$23.5 billion from the rights issue and injected NT$20 billion into First Commercial Bank to strengthen the bank’s capital structure, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.