S&P: Ratings On Cathay Financial Holding And Units Affirmed; Cathay Century Rating Raised To 'A'

SINGAPORE--Standard & Poor's Ratings Services has affirmed its ratings on the following entities of Cathay Financial Holding Co. Ltd. (Cathay FHC) group:

-- 'A-' long-term counterparty credit rating and 'A-2' short-term rating on Cathay FHC;

-- 'A' insurer financial strength and counterparty credit ratings on Cathay Life Insurance Co. Ltd.; and
-- 'A' long-term counterparty credit ratings, 'A-1' short-term foreign currency rating, and 'C+' bank fundamental strength rating on Cathay United Bank Co. Ltd. (CUB).

Standard & Poor's also raised its insurer financial strength and counterparty credit ratings on Cathay Century Insurance Co. Ltd. (Cathay Century) to 'A' from 'A-'.

The outlooks for both long-term counterparty credit ratings on the holding company and all of the holding company's operating subsidiaries are stable.

"The rating affirmation on Cathay FHC reflects the group's strong core earnings and risk management ability despite the group's negative return on assets (ROA) of 0.12% in first-half 2008," said credit analyst Serene Hsieh.

For a detailed copy of S&P's report, please contact

Jeff Sexton, New York, (1) 212-438-3448mailto:212-438-3448jeff_sexton@standardandpoors.com

Analyst Contacts:

Serene Hsieh, CPA, Taipei (8862) 8722-5820
Andy Chang, CFA, Taipei (8862) 8722-5815