The ratings on TAIPEIBANK reflect its asset quality, which is better than the Taiwan domestic average, satisfactory market position, strong capitalization and membership in the Fubon Financial Holding 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 a high level of 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 than the economies of other Taiwan cities in recent years. While the quality of TAIPEIBANK's credit portfolio, like that of other Taiwan banks,
