S&P lifts First Financial view to positive

Standard & Poor’s said it revised the outlook on the long-term issuer credit ratings of First Financial Holding Co. Ltd. and First Commercial Bank Ltd. to positive from stable.

The agency also said it affirmed the respective long-term and short-term issuer credit ratings on the bank and holding company.

S&P also said it raised the long-term Greater China regional scale rating on First Commercial Bank to cnAA- from cnA+ and affirmed the short-term rating at cnA-1.

The agency also said it affirmed the long- and short-term Greater China regional scale ratings on First Financial Holding.

First Commercial Bank is likely to improve its capitalization to a strong level after its parent, First Financial Holding, completes a new rights issue in September 2015, S&P said.

The bank is expected to maintain its improved capitalization over the next two years, given its business expansion plan over the same period, the agency added.

The ratings reflect the group’s adequate capitalization, good domestic market positions with the support of the group’s established banking franchise and its satisfactory funding and liquidity profile, S&P said.

Counterbalancing factors include continuing competitive pressure on First Financial Holding’s profitability and the group’s concentrated revenue structure, the agency said.

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