Taiwan-based Fubon FHC group has announced its plan to acquire an 80% stake in China-based First Sino Bank. We assess the impact of the acquisition on the group credit profile to be manageable underpinned by the group's prudent capital policies and capital-raising plan. Nonetheless, the acquisition may put pressure on Taipei Fubon Bank's capitalization and its stand-alone credit profile if the group fails to inject sufficient capital to Taipei Fubon Bank to maintain its strong capitalization. We are revising the outlook on Taipei Fubon Bank to negative from stable. We are also lowering our long-term Greater China regional scale rating on the bank to 'cnAA-' from 'cnAA'. At the same time, we are affirming all other ratings on Fubon FHC
