OREANDA-NEWS. Fitch Ratings has assigned CTBC Bank Co., Ltd.'s (CTBC Bank) upcoming USD257m senior unsecured bonds a National Long-Term Rating of 'AA+(twn)'.

The bonds carry a zero coupon rate and will mature on 27 January 2045 if there is no early redemption by CTBC Bank. The notes have a soft call provision that allows for early redemption of all of the notes on 27 January of each year beginning 2017. The bond proceeds will be used to support CTBC Bank's diversified funding base.

KEY RATING DRIVERS - Debt Rating

The senior unsecured bond is rated at the same level as CTBC Bank's National Long-Term rating of 'AA+(twn)', which reflects the relative vulnerability of default on its senior obligations within a national scale for Taiwan. The bond constitutes direct, unconditional and unsecured obligations of the bank and is rated in accordance with Fitch's criteria on rating senior unsecured bond instruments.

RATING SENSITIVITIES - Debt Rating

Any rating action on CTBC Bank's National Long-Term rating will trigger a similar move on the debt rating.

The other ratings on CTBC Bank are unchanged and are as follows:

Long-Term Foreign Currency IDR of 'A'; Outlook Negative
Short-Term Foreign Currency IDR of 'F1';
National Long-Term Rating of 'AA+(twn)'; Outlook Negative
National Short-Term Rating of 'F1+(twn)';
Viability Rating of 'a';
Support Rating of '3'
Support Rating Floor of 'BB+'
Senior unsecured bonds' National Long-Term Rating of 'AA+(twn)';
Subordinated bonds' Long-Term Rating of 'A-' and National Long-Term Rating of 'AA(twn)';
Perpetual cumulative New Taiwan dollar subordinated bonds' Long-Term Rating of 'BBB' and
National Long-Term Rating of 'A+(twn)';
Perpetual cumulative US dollar subordinated bonds' Long-Term Rating of 'BBB';
Perpetual non-cumulative New Taiwan dollar subordinated bonds' (Basel III Additional Tier 1 capital) National Long-Term Rating of 'A(twn)';
Subordinated bonds' (Basel III Tier 2 capital) National Long-Term Rating of 'AA-(twn)'