OREANDA-NEWS. Fitch Ratings has affirmed the ratings of Taiwan-based Mega International Commercial Bank Company Limited (Mega ICBC) with Stable Outlook. The ratings and Outlook of Mega ICBC are simultaneously withdrawn due to commercial reasons. A full list of ratings is provided at the end of the commentary.

KEY RATING DRIVERS
IDRs, NATIONAL RATINGS, SUPPORT RATING, SUPPORT RATING FLOOR
Mega ICBC's IDRs and National Ratings take into account the extremely high probability of government support, if needed, as reflected in its Support Rating (SR) of '1' and Support Rating Floor (SRF) of 'A-'. This is underpinned by the state's controlling equity stake in the bank, the bank's significant systemic importance and its strong ties with the central bank.

Mega ICBC has a Stable rating Outlook, reflecting that of the Taiwan sovereign (A+/Stable) and Fitch's expectation that the state's ability or propensity to support the bank will not weaken.

VIABILITY RATING
The affirmation of the Viability Rating (VR) reflects the bank's maintenance of satisfactory capitalisation and sound asset quality in the context of its relatively high concentration in China and property exposures.

China exposure has declined as the Chinese economy slows, but it was relatively more concentrated than local peers (gross exposure estimated by Fitch at 200-210% of Fitch Core Capital (FCC) at end 1H15). Exposure has been mostly focused on trade finance and top-tier Chinese banks and is therefore of lower risk.

The bank has continued to sustain a stable capital profile through new share issues and active growth management. Fitch expects the bank to maintain a stable FCC ratio at 10.5% at end 1H15, comparable to similarly rated regional peers.

The full list of rating actions is as follows:
- Long-Term IDR affirmed at 'A-'; Outlook Stable; withdrawn
- Short-Term IDR affirmed at 'F2'; withdrawn
- National Long-Term Rating affirmed at 'AA(twn)'; Outlook Stable; withdrawn
- National Short-Term Rating affirmed at 'F1+(twn)'; withdrawn
- Viability Rating affirmed at 'a-'; withdrawn
- Support Rating affirmed at '1'; withdrawn
- Support Rating Floor affirmed at 'A-'; withdrawn.