Taiwan-based Nan Shan Life has yet to complete the required quality enhancements to its information technology (IT) system to address the issues that triggered regulatory penalties and business orders in 2019. We believe the progress increases the risks to Nan Shan Life's creditworthiness as uncertainty grows over its business momentum, earnings performance, and franchise relative to those of similarly rated local peers. We are therefore lowering our long-term issuer credit rating and financial strength rating on Nan Shan Life and its subsidiary, Nan Shan General, to 'BBB+' from 'A-'. At the same time, we removed the ratings from CreditWatch with negative implications. The stable rating outlook reflects our view that Nan Shan Life will maintain its financial risk profile and
