Fitch lowers Pan Asia Banking view to negative

Fitch Ratings said it revised Pan Asia Banking Corp. plc’s outlook to negative from stable.

The agency also said it affirmed the bank’s national long-term rating at BBB(lka) and the rating on the bank’s outstanding subordinated debentures at BBB-(lka).

The negative outlook reflects the continued deterioration in the bank’s capitalization amid aggressive loan growth, Fitch said.

The agency said it believes there is a high chance that the bank will not be able to materially increase its capital ratio during the second half of 2015, which could result in a downgrade.

The ratings also consider the bank’s weak asset quality relative to higher rated peers and moderate franchise, Fitch said.

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