Fubon Bank (China) Co. Ltd.

Highly strategic subsidiary of Fubon FHC. The stable outlook reflects our expectation that Fubon Bank (China) Co. Ltd. will remain a highly strategic subsidiary of Taiwan-based Fubon Financial Holding Co. Ltd. (Fubon FHC: BBB+/Stable/A-2). The outlook also reflects our view that the group will maintain its credit profile over the next one to two years. We may upgrade Fubon Bank (China) if Fubon FHC group's credit profile improves meaningfully. Although unlikely in the near term, we may also raise the rating if we view Fubon Bank (China) as a core entity of the group. This could happen if the bank can improve its profit and capital contributions to the group, such that it becomes one of the major and stable

...*Exposure at default. ºSecuritisation exposure includes the securitisation tranches deducted from capital in the regulatory framework. Other assets includes Deferred Tax Assets (DTAs) not deducted from ACE. Adjustments to Tier 1 ratio are additional regulatory requirements (e.g. transitional floor or Pillar 2 add-ons). RWA--Risk-weighted assets. RW--Risk weight. RAC--Risk-adjusted capital.CNY--Chinese yuan. Sources: Company data as of Dec. 31, 2017, S&P Global Ratings....

Full Report