OREANDA-NEWS. Fitch Ratings has affirmed Taiwan-based Chang Hwa Bank's Long-Term Issuer Default Rating (IDR) at 'BBB+' and its National Long-Term Rating at 'AA-(twn)' with Stable Outlook. The ratings and outlook on Chang Hwa Bank are simultaneously withdrawn as they are no longer considered relevant to the agency's rating coverage. A full list of rating actions is at the end of this rating action commentary.

KEY RATING DRIVERS - IDRs, National Ratings, Support Rating, Support Rating Floor

Chang Hwa Bank's IDRs and National ratings are driven by the Support Rating (SR) and Support Rating Floor (SRF), which reflect the high probability of support from the state given its systemic importance and government ownership.

The Stable Outlook reflects Fitch's expectation that the Taiwanese state (A+/Stable) will continue to have the ability and propensity to provide support to Chang Hwa Bank, if needed.

KEY RATING DRIVERS - Viability Rating

Chang Hwa Bank's Viability Rating (VR) reflects its long established domestic franchise and strengthening financial profile underpinned by manageable asset growth, sound asset quality, and steadily improving operating profits.

KEY RATING DRIVERS - Subordinated Debt

Chang Hwa Bank's subordinated debt is rated one notch below its National Long-Term rating, reflecting its subordinated status and the absence of any going-concern loss-absorption mechanism (such as coupon deferral under specified conditions).

The full list of rating actions is as follows:
- Long-Term IDR affirmed at 'BBB+'; Outlook Stable; withdrawn
- Short-Term IDR affirmed at 'F2'; withdrawn
- National Long-Term Rating affirmed at 'AA-(twn)'; Outlook Stable; withdrawn
- National Short-Term Rating affirmed at 'F1+(twn)'; withdrawn
- Viability Rating affirmed at 'bbb'; withdrawn
- Support Rating affirmed at '2'; withdrawn
- Support Rating Floor affirmed at 'BBB+'; withdrawn
- Subordinated bonds affirmed at 'A+(twn)'; withdrawn.