OREANDA-NEWS. Fitch Ratings has affirmed Taiwan-based IBT Securities Co., Ltd.'s (IBTS) National Long-Term Rating at 'BBB+(twn)' and National Short-Term Rating at 'F2(twn)'. The Outlook is Stable.

KEY RATING DRIVERS
NATIONAL RATINGS

IBTS's ratings reflect Fitch's expectation of moderate probability of support from its 94.8% parent Industrial Bank of Taiwan (IBT), if needed. IBT's ability to support IBTS is constrained mainly by its credit profile. That said, Fitch believes that IBT has a high propensity to support IBTS. This is due to IBT's managerial control over IBTS, the operational integration between IBT and IBTS, and IBTS's support to IBT's corporate banking franchise as well as its planned expansion in retail banking business.

RATING SENSITIVITIES
NATIONAL RATINGS

IBTS's ratings move in tandem with IBT's credit profile and potential support. A ratings upgrade could be considered if IBT were to improve its risk profile further, particularly its concentration risk in loan and liquidity while IBTS maintaining its strategic importance to the parent. Negative rating action could result from IBT's weakened balance-sheet strength. Any weakening in the links between IBTS and IBT, including ownership and reduced strategic importance of IBTS within the group, would also put pressure on IBTS's ratings.