Fitch ups Cosmos Bank to D/E

Fitch Ratings said it upgraded the individual rating of Cosmos Bank to D/E from F, following its latest recapitalization completed at the end of 2007.

The recapitalization includes new share issues for NT$6.6 billion, a debt-equity swap with its financial institutional creditors for NT$13.2 billion and issuances of hybrid capital instruments mainly to its new chief investor SAC Private Capital Group, LLC.

The upgrade reflects Cosmos's improved capitalization after completing the recapitalization plan, Fitch said.

The agency said it expects the bank's profitability to remain challenging due to its relatively high cost base, a slow domestic personal credit market and additional provisions needed to cover its unamortized losses and potential credit costs from its debt restructured portfolio.

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