The 'BBB+' long-term and 'A-2' short-term foreign currency counterparty credit ratings on TAIPEIBANK were affirmed on Dec. 23, 2002. The outlook on the long-term rating is stable. The ratings reflect the bank's asset quality, which is better than the Taiwan domestic average, satisfactory market position, good capitalization and membership in the Fubon Financial Holdings Co. Ltd. (Fubon FHC, BBB/Stable/A-3) group. Constraining rating factors remain the bank's low profitability and an adverse operating environment characterized by high problem loans plaguing the banking industry. The bank's asset quality is supported by a beneficial concentration of credit exposure to the central and Taipei city governments, and a base of borrowers located mainly in the Taipei city area. Taipei city's economy has fared better
