Fitch Ratings has affirmed
The Outlook is Negative. The ratings have been removed from Rating Watch Negative.
At the same time, Fitch has affirmed DBS Taiwan's Short-Term IDR at 'F1+', National Short-Term Rating at 'F1+(twn)' and Support Rating at '1'.
The ratings actions follow the rating actions on its parent
KEY RATING DRIVERS
IDRS, NATIONAL RATINGS AND SUPPORT RATING
DBS
DBS
DBS
Fitch has not assigned a Viability Rating to DBS Taiwan due to its strong business and operational integration with DBS and the absence of a meaningful standalone franchise.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:
An IDR upgrade is unlikely given the Negative Outlook on DBS Taiwan and its parent DBS. A revision of the Outlook on the Long-Term IDR on parent DBS to Stable will have a similar impact on the Long-Term IDR and National Long-Term Rating of DBS Taiwan. The bank's national ratings and Support Rating are already at the top end of the scales and there is no upside.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Downgrades on DBS Taiwan's IDRs and National Ratings will arise from any negative rating action on DBS's IDRs and Viability Rating. They could also result from Fitch's belief that the parent's propensity to support DBS Taiwan has diminished because of strategic considerations, and this may affect the Support Rating if the change in propensity is significant.
DBS
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from '
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
DBS
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg
RATING ACTIONS
ENTITY/DEBT RATING PRIOR
DBS Bank (Taiwan) Ltd. LT IDR AA- Affirmed AA-
ST IDR F1+ Affirmed F1+
Natl LTAAA (twn) AffirmedAAA (twn)
Natl ST F1+(twn) Affirmed F1+(twn)
Support 1 Affirmed 1
VIEW ADDITIONAL RATING DETAILS
Additional information is available on www.fitchratings.com
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