Fitch affirms Mega International

Fitch Ratings said it affirmed the ratings of Mega International Commercial Bank Co. Ltd., including its long-term issuer default rating at A-, short-term foreign-currency rating at F2, national long-term rating at AA(twn), national short-term rating at F1+(twn), individual rating at B/C and support rating at 2.

The outlook is stable.

The ratings reflect the bank's strength in terms of its asset quality, capitalization and local franchise despite its profitability and earning quality being below its regional peers in Asia, Fitch said.

The bank's pro forma net earnings in January-September 2006 was weakened by sizable bad debt provisioning and interest margin compression, the agency said. However, the aggressive reserve provisioning provided the bank with strong bad debt coverage, Fitch added.

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