Ping Chew Rating Quotations

This report brings together our latest thinking on the key developments and credit outlooks of the major financial services sectors in Taiwan. This report also addresses the rating implications of the emergence of financial holding company (FHC) groups since late 2001.

The 'A-' rating on the proposed notes reflects the direct, irrevocable, and unconditional guarantee by the government of Malaysia.

A rating upgrade can be considered only if the debt burden keeps reducing, not just through revenue growth, but also through expenditure improvement.

The ratings reflect Taiwan's strong external position and robust economy in a challenging policy environment in which fiscal flexibility has weakened.

The ratings on Taiwan could be lowered if further fiscal slippages cause the debt burden to rise markedly.

If the reforms become entrenched and future bad loans are reduced, then there are chances of the government's ratings being upgraded.