Fitch revises view on Taiwanese securities firms to negative

Fitch Ratings said it revised the outlook on eight Taiwanese securities companies to negative from stable and affirmed their issuer default ratings and national ratings.

The companies affected are Oriental Securities Corp., Concord Securities Co., Ltd., Grand Fortune Securities Co., Ltd., Shin Kong International Securities Co., Ltd., Ta Ching Securities Co., Ltd., Tachan Securities Co., Ltd., Horizon Securities Co., Ltd. and CL Securities Taiwan Co. Ltd.

The revision reflects heightened uncertainty arising from the coronavirus pandemic. It also reflects the associated pressure on the companies' earnings and profitability amid potential proprietary trading losses arising from increased capital market volatility as well as lower revenue generation from brokerage activities.

The affirmation reflects Fitch's view the companies have adequate capital buffers to withstand the immediate shock brought about by the pandemic.

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