S&P affirms Cathay United

Standard & Poor's said it affirmed the A long-term and A-1 short-term counterparty credit ratings on Cathay United Bank Co. Ltd. after it announced plans to acquire most of the assets and liabilities of China United Trust & Investment Corp.

The outlook on the long-term rating is stable.

According to S&P, the ratings reflect support from the wider Cathay group under Cathay Financial Holding Co. Ltd. (A-/stable/A-2) as well as the bank's satisfactory core earnings and adequate capitalization.

Other factors include the challenges of finding new revenue sources and of enhancing its credit risk controls in a highly competitive operating environment, the agency said.

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