Fitch affirms Industrial Bank of Taiwan

Fitch Ratings said it affirmed Industrial Bank of Taiwan's ratings, along with the national long-term rating at F2(twn) of its subsidiary, IBT Securities Co., Ltd. The agency also said it downgraded IBT Securities' long-term rating to BBB+(twn) from A-(twn).

The outlook was revised to negative from stable.

The downgrade follows the incidence of a default on the company's bonds with re-sell agreements, Fitch said.

The downgrade reflects the weakened capacity at IBT, with regard to providing strong liquidity and capital support to Industrial Bank, Fitch said.

Industrial Bank's substantially weakened capitalization and potential further losses arising from a prolonged equity market slump have lead to the negative outlook, the agency added.

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