The 'BBB+' long-term counterparty credit rating and 'A-2' short-term counterparty credit rating on Taipeibank were affirmed on Feb. 5, 2004. The outlook on the ratings is stable. The ratings on Taipeibank reflect its average asset quality, satisfactory market position, good capitalization, and membership in the Fubon Financial Holding Co. Ltd. (Fubon FHC, BBB/Stable/A-3) group. These factors are partly offset by the competitive nature of Taiwan banking sector and the bank's profitability, which is only moderate by international standards (though above the domestic average). Taipeibank's asset quality is supported by a beneficial concentration of credit exposure in Taipei City, where the economy has fared better than the economies of other Taiwan cities in recent years. While the quality of Taipeibank's credit
