Standard & Poor's Ratings services said today that it had affirmed its 'BBB-' long-term counterparty credit rating and 'A-3' short-term credit rating on Bank SinoPac of Taiwan, one of the top three banks in Taiwan involved in factoring. The outlook on the long-term credit rating is stable. The ratings reflect Bank SinoPac's adequate financial profile, prudent risk controls, and satisfactory position in certain niche products.
Counterbalancing factors include the bank's still-small market share and Taiwan's highly competitive banking environment. Bank SinoPac has consistently improved its business profile in recent years. The bank's share of the domestic banking system's assets increased to 1.9% as at June 2004 from 1.1% in 2000.
As a result of ongoing product innovation and infrastructure enhancement, Bank SinoPac has established niche positions in several business lines, including foreign exchange, derivatives, and factoring.
