Standard&Poor's Ratings Services said today that its ratings on Taiwan-based Cathay Life Insurance Co. Ltd. (Cathay Life; A-/Stable/--, cnAA/--) are not affected by the company's plan to acquire a 20% stake in Philippine-based Rizal Commercial Banking Corp. The plan has also not affected the rating on Cathay Life's parent, Cathay Financial Holding Co. Ltd. (Cathay FHC; BBB+/Stable/A-2, cnA+/cnA-1) and other group entities. The total consideration of the transaction would be about Philippine peso (PHP) 17.92 billion, approximately Taiwan dollar (NT$) 12.55 billion. The investment plan is in line with Cathay FHC group's strategy to diversify its business portfolio outside of Taiwan by expanding in the ASEAN market. We view this investment as manageable relative to Cathay FHC group's
