...Steady Intrinsic Credit Profile: Sunny Bank Ltd.'s ratings are driven by its intrinsic credit profile, with the assigned Viability Rating (VR) in line with the implied VR. Fitch Ratings expects the bank to maintain a stable credit profile, supported by steady recurring earnings and well-contained credit costs, underpinned by its established SME franchise and focus on secured lending. The rating also takes into consideration Sunny's sector concentration and its gradually improved core capitalisation. Stable Operating Environment: We expect Taiwan's economy to remain resilient, with forecast GDP growth of 10.5% in 2026 and 4.9% in 2027, compared with 8.8% in 2025. Exports of AI-related products and investments are likely to support the economy, underpinning the operating environment (OE) for Taiwan banks. The OE score is below the implied category score of 'aa', reflecting the banks' high fragmentation, which we believe will continue to constrain operating conditions and limit banks' ability...
