Fitch places Promise on positive watch

Fitch Ratings said it placed Promise Co., Ltd.'s long-term foreign- and local-currency issuer default ratings of BBB- on Rating Watch positive.

Promise has a long-term foreign- and local-currency issuer default ratings of BBB-, short-term foreign- and local-currency issuer default ratings of F3 and senior unsecured debt ratings of BBB-.

This follows Sumitomo Mitsui Financial Group, Inc.'s takeover bid to acquire the rest of Promise's shares, Fitch said. Sumitomo currently owns 22% of Promise via Sumitomo Mitsui Banking Corp., the agency said.

The watch reflects expectations that Sumitomo's propensity to support Promise in case of need will increase with the latter potentially becoming a wholly-owned subsidiary, the agency said.

Fitch said it expects to resolve the watch after reviewing the takeover outcome, which is expected in December.

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