Land Bank of Taiwan – Ratings Affirmed with a Stable Outlook

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed the Long-Term Foreign Currency Rating (LT FCR) and Short-Term Foreign Currency Rating (ST FCR) of Land Bank of Taiwan (LBOT) at ‘A’ and ‘A1’, respectively. At the same time, CI Ratings has affirmed LBOT’s Bank Standalone Rating (BSR) of ‘bbb’, Core Financial Strength (CFS) rating of ‘bbb-’, and Extraordinary Support Level (ESL) of Very High. The Outlook for the LT FCR and BSR remains Stable.

The Bank’s LT FCR is set three notches above the BSR to reflect the very high likelihood of extraordinary support given LBOT’s government ownership and CI’s internal assessment of the Taiwanese sovereign’s creditworthiness.

LBOT’s BSR is derived from a CFS rating of ‘bbb-’ and an Operating Environment Risk Anchor (OPERA) of ‘a-’. The OPERA indicates low risk and reflects the economy’s extremely strong external position, which constitutes an important buffer against…