Taiwan Cooperative Bank’s BSR Lowered; LT FCR Affirmed with a Stable Outlook

Taiwan Cooperative Bank’s BSR Lowered; LT FCR Affirmed with a Stable Outlook

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed the Long- T erm Foreign Currency Rating ( LT FCR ) and Short-Term Foreign Currency Rating ( ST FCR ) of Taiwan Cooperative Bank (TCB) at ‘A-’ and ‘A2’, respectively . At the same time , CI Ratings has downgraded TCB ’s Bank Standalone Rating ( BSR ) to ‘bbb’ from ‘bbb+’ following a downward adjustment in its Core Financial Strength (CFS) rating to ‘bbb-’ from ‘bbb’ . The Outlook for the LT FCR and BSR is Stable.

The lowering of the Bank’s BSR and CFS rating is driven by the expected deterioration in asset quality due to T CB’s exposure to sectors particularly impact ed by the Covid-19 pandemic and sharp decline in export demand – notably SME s . The LT FCR remains unchanged, however, since we have…