Taiwan Cooperative Bank – 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 Taiwan Cooperative Bank (TCB or the Bank) at ‘A-’ and ‘A2’, respectively. At the same time, CI Ratings has affirmed TCB’s Bank Standalone Rating (BSR) of ‘bbb’, Core Financial Strength (CFS) rating of ‘bbb-’ and Extraordinary Support Level (ESL) of High. The Outlook on the LT FCR and BSR is Stable.

The Bank’s LT FCR is set two notches above the BSR to reflect the high likelihood of extraordinary support from the government. The ESL of High is underpinned by the Bank’s size and systemic importance, along with the government’s large and stable ownership in the holding company Taiwan Cooperative Financial Holding Co Ltd (TCFH). In our view, the Taiwanese government has the means, given its strong fiscal position, and the willingness to provide support to the Bank in case of…