On 16 Dec 2020, Fitch Ratings has assigned
Taiwan's Export-Import Bank of the Republic of China (Taiwan EXIM) the
Long-Term Issuer Default Rating of 'AA-';
Short-Term Issuer Default Rating of 'F1+'
National Long-Term Rating of 'AAA(twn)';
National Short-Term Rating of 'F1+(twn)'
Support Rating of '1'
Support Rating Floor of 'AA-'
National Long-Term Rating on senior
unsecured bonds of 'AAA(twn)'
Taiwan EXIM is a wholly state-owned policy
bank that is supervised by the Ministry of Finance (MoF). It was established in
1979 under The Export-Import Bank of the Republic of China Act to support
government economic and trade policies, including the provision of financing
guarantees and credit insurance to local enterprises as well as financing to foreign enterprises. Under the act, the government is
obliged to make up for any net losses that are not covered by the bank's own
The bank has a strong linkage to the
government, which is evident in 62% of the bank's funding being either provided
by the central bank or other government agencies at end-3Q20. In addition, the
government arranged for the bank's capital to increase byTWD20 billion since
2016 via injections from the MoF's annual budgets and waivers of dividend
payments by the bank to the treasury from 2018 to 2020.
Taiwan EXIM has been able to maintain
modest profitability while executing government policies
in external trade, and has continued to do so during the global economic
downturn in 2020 due to coronavirus pandemic. This role is particularly important
during the pandemic in light of Taiwan's export-dependent economy. The bank
plays an important role in government-initiated debt relief program by
providing relief loans and insurance discounts to exporters. The bank prudently
manages its balance sheet to maintain sound capital strength and a satisfactory
asset-quality profile. The bank has not encountered significant financial distress that has required
extraordinary capital or liquidity support from the government in the past.