Latest Rating of IBT

TRC	Long term	twA
(2011/6/23)	Short Term	twA-1
	Outlook	Stable
History	2010/6/22	twA/Stable/twA-1
	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. today(2011.6.23) 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. At the same time we affirmed the 'twA-' issue rating on IBT's subordinated debenture. The ratings on IBT reflect the bank's satisfactory capitalization, stable management under a consistent business strategy, and gradually increasing diversification on its business profile. Counterbalancing factors include the wholesale nature of IBT's funding profile, the earnings volatility inherent in its high correlation with the capital market, and its smaller market position compared to domestic peers'.

Outlook
The stable outlook reflects our expectation that the IBT group, of which IBT is the core entity, will maintain its satisfactory capitalization over the next one to two years as a result of the group's prudent business growth strategy and capital policy amid the recovering global economy. Moreover, we expect integration and resource movement among IBT group members, particularly China Bills Finance Co. Ltd., to 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 expansion move or capital plan, or if the bank's asset quality weakens due to the unfavorable economy given the bank's higher concentration risk nature.

Rating Report

Document	Language	Format	Size
2011/6/23 TRC Rating Report	English	PDF	40 kb