Fitch Ratings has maintained SinoPac Securities' long-term issuer default rating at BBB+ and AA-(twn) national long-term rating with a stable outlook, following its plan to acquire CL Securities Taiwan.

The rating agency views the acquisition as neutral to SinoPac Securities' credit profile, as the target represents only about 2% of its assets as of end-2024, according to a Sunday release.

Meanwhile, the rating agency put CL Securities Taiwan's national long-term and short-term ratings on Rating Watch Positive, reflecting an expected boost to its credit profile from potential integration into the stronger SinoPac group.

SinoPac Securities continues to benefit from extraordinary shareholder support from its parent, SinoPac Financial Holdings (TPE:2890), whose ability and propensity to support will remain unchanged by this acquisition, Fitch said.

The acquiring securities company will continue to have a robust standalone credit profile given its market position and ample balance sheet cushion, according to the rating agency.

For CL Securities Taiwan, its standalone credit profile stems from its monoline institutional brokerage franchise, straightforward balance sheets, and steady profitability.