Latest Rating of IBT

TRC	Long term	twA
(2010/6/22)	Short Term	twA-1
	Outlook	Stable
History	2010/3/08	twA/Stable/twA-1
	2009/6/10	twA/Negative/twA-1
	2009/3/03	twA/Negative/twA-1
	2008/6/16	twA/Stable/twA-1
	2007/06/15	twA/Stable/twA-1
	2006/6/20	twA/Stable/twA-2
	2005/07/15	twA-/Positive/ twA-2
	2004/12/22	twA-/Stable/ twA-2
	2004/07/15	twBBB/Stable/twA-3
	2001/07/09	twBBB-/Stable/twA-3

 

RATIONALE

Taiwan Ratings Corp.
Taiwan Ratings Corp. today (2010.6.22) affirmed its 'twA' long-term and 'twA-1' short-term counterparty credit ratings on Industrial Bank of Taiwan (IBT). The outlook on the long-term rating is stable. The ratings on IBT reflect the bank's adequate capitalization and stable management under a consistent business strategy. Counterbalancing factors include the wholesale nature of IBT's funding profile and the earnings volatility inherent in its venture capital business.

Outlook
The stable outlook reflects our expectation that the IBT group, of which IBT is the dominating core entity, will maintain adequate capitalization because of the group's prudent business growth strategy and the gradually recovering global economy over the next one to two years. Moreover, we expect integration and resource movement among IBT group members, particularly its 28%-owned China Bills Finance Corp., will further strengthen over the next one to two years. We may lower the ratings on IBT if the group's capitalization deteriorates as a result of an aggressive capital plan, or its asset quality weakens due to an unfavorable future economic climate given the bank's higher concentration risk nature.

Rating Report

Document	Language	Format	Size
2010/6/22 TRC Rating Report	English	PDF	23 kb