TEXT-Fitch Upgrades Pacific Securities; Withdraws Ratings

Fri Nov 16, 2012 12:11am EST

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(The following was released by the rating agency)

TAIPEI/SYDNEY, November 16 (Fitch) Fitch Ratings has upgraded Taiwan-based Pacific Securities Corporation's (PSC) National Ratings to Long-Term 'A+(twn)' and Short-Term 'F1+(twn)' and removed them from Rating Watch Positive (RWP). The ratings have simultaneously been withdrawn.

The upgrade follows acquisition by SinoPac Securities (SPS), a fully-owned subsidiary of SinoPac Financial Holdings (SPH: 'BBB'/Stable). PSC's ratings are now aligned with those of SPH on the basis that it will benefit from group support from SPH. Under the Financial Holding Company Act, SPH is obliged to assist its subsidiary if falls into financial difficulties. Given the small size of the merged entity relative to SPH, Fitch believes that the holding company will be able to support the former, in case of need, without significantly affecting its ratings.

The ratings have been withdrawn, as PSC has now been merged into SPS and no longer exists as an entity. Please also refer to the latest rating action commentary on SPH, dated 7 November 2012.

The rating actions are as follows:

PSC:

National Long-Term rating upgraded to 'A+(twn)' from 'BBB-(twn)'; removed from RWP; withdrawn;

National Short-Term rating upgraded to 'F1+(twn)' from 'F3(twn)'; removed from RWP; withdrawn

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