SHIN KONG RATINGS AFFIRMED

Taiwan's Shin Kong Financial Holdings' strong business franchise in its domestic life insurance industry has prompted Fitch to affirmed the carrier's BBB+ insurer financial strength rating. Fitch also pointed to the company's "satisfactory liquidity" as positive factors. Still it expressed concerns about what it referred to as the insurer's volatile investment performance, but it did say Shin Kong Life's good underwriting profits, proactive asset management, and experienced asset-liability management provide good buffers to its operating performance. Fitch also affirmed its 'BBB' long-term counterparty credit rating on the insurer and its 'BBB+' long-term, 'A-2' short-term counterparty credit ratings and 'D+' bank fundamental strength rating on Taiwan Shin Kong Commercial Bank in a move which it said reflected Shin Kong Bank's importance to the parent financial services group.