Fitch Ratings said in a separate statement that the share purchase would have a moderate impact on Chinatrust Financial’s financial profile, adding that Nan Shan’s profitability would be greatly influenced by its investment performance and that would likely increase Chinatrust Financial’s earnings volatility after the share purchase.
However, both S&P and Fitch said the impact of the share purchase on the bank-centric Chinatrust group’s capitalization should be manageable, because the deal would be funded mainly through the issuance of new common shares.
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