(The following statement was released by the rating agency)TAIPEI/SINGAPORE, May 19 (Fitch) Fitch Ratings has affirmed Taiwan-based Hua Nan Commercial Bank's (HNB) ratings, including its Long-Term Issuer Default Rating (IDR) at 'BBB+'. The Outlook is Stable. A full list of rating actions is at the end of this rating action commentary.KEY RATING DRIVERS - IDRS, NATIONAL RATINGS, SUPPORT RATING AND SUPPORT RATING FLOORThe affirmation of HNB's IDRs and National ratings are driven by its Support Rating (SR) and Support Rating Floor (SRF), which reflect the high probability of support from the state given its systemic importance. This is evident in the state's long-term and majority ownership (currently around 23%) in its parent, Hua Nan Financial Holding Company, and the bank's leading franchise with the third-largest branch network in Taiwan and a 5.7% deposit market share. The Stable Outlook reflects Fitch's expectation that the state's ability and/or propensity to support HNB will not weaken.  RATING SENSITIVITIES - IDRS, NATIONAL RATINGS, SUPPORT RATING AND SUPPORT RATING FLOORThe bank's IDRs, National Ratings, SR and SRF are sensitive to any change in assumptions around the ability or propensity of the state to provide timely support to the bank. This would most likely be manifested in a change to Taiwan's sovereign rating (A+/Stable) or a move towards full privatisation of the bank. KEY RATING DRIVERS - VIABILITY RATINGThe bank's VR primarily reflects its strong domestic franchise, particularly among SMEs, ordinary support from the state and adequate capitalisation relative to its moderate risk profile. While HNB's 11%-12% Fitch Core Capital ratio - after adjusting for greater capital charges for mortgages in Taiwan - is satisfactory compared with regional peers, its earnings are slightly weaker than the peer average and its growth plan in China may weaken its capitalisation.RATING SENSITIVITIES - VIABILITY RATINGExcessive growth and aggressive M&A in China, leading to weaker capitalisation and risk profile, is the most likely trigger for a VR downgrade. A VR upgrade could occur if HNB can sustain higher profitability and stronger internal capital generation in line with better-rated peers but without significantly raising its risk appetite. The rating actions are as follows: HNB:Long-Term IDR affirmed at 'BBB+'; Outlook StableShort-Term IDR affirmed at 'F2'National Long-Term rating affirmed at 'AA-(twn)'; Outlook StableNational Short-Term rating affirmed at 'F1+(twn)'Viability Rating affirmed at 'bbb-'Support Rating affirmed at '2'Support Rating Floor affirmed at 'BBB+'Contact: Primary Analyst Cherry Huang, CFADirector+886 2 8175 7603Fitch Ratings Limited, Taiwan BranchSuite 1306, 13F, Tun Hwa N. Rd., TaipeiSecondary Analyst Clark WuAssociate Director+886 2 8175 7602Committee ChairpersonMark YoungManaging Director+65 6796 7229Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com; Wai-Lun Wan, Hong Kong, Tel: +852 2263 9935, Email: wailun.wan@fitchratings.com.Additional information is available on 
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 Applicable criteria, 'Global Financial Institutions Rating Criteria', dated 1 January 2014, 'National Scale Ratings Criteria', dated 30 October 2013 are available at 
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May 19 (Reuters) - (The following statement was released by the rating agency)

Fitch Ratings has affirmed Taiwan-based Hua Nan Commercial Bank's HUANAB.UL (HNB) ratings, including its Long-Term Issuer Default Rating (IDR) at 'BBB+'. The Outlook is Stable. A full list of rating actions is at the end of this rating action commentary.

KEY RATING DRIVERS - IDRS, NATIONAL RATINGS, SUPPORT RATING AND SUPPORT RATING FLOOR

The affirmation of HNB's IDRs and National ratings are driven by its Support Rating (SR) and Support Rating Floor (SRF), which reflect the high probability of support from the state given its systemic importance. This is evident in the state's long-term and majority ownership (currently around 23%) in its parent, Hua Nan Financial Holding Company, and the bank's leading franchise with the third-largest branch network in Taiwan and a 5.7% deposit market share.

The Stable Outlook reflects Fitch's expectation that the state's ability and/or propensity to support HNB will not weaken.

RATING SENSITIVITIES - IDRS, NATIONAL RATINGS, SUPPORT RATING AND SUPPORT RATING FLOOR

The bank's IDRs, National Ratings, SR and SRF are sensitive to any change in assumptions around the ability or propensity of the state to provide timely support to the bank. This would most likely be manifested in a change to Taiwan's sovereign rating (A+/Stable) or a move towards full privatisation of the bank.

KEY RATING DRIVERS - VIABILITY RATING

The bank's VR primarily reflects its strong domestic franchise, particularly among SMEs, ordinary support from the state and adequate capitalisation relative to its moderate risk profile. While HNB's 11%-12% Fitch Core Capital ratio - after adjusting for greater capital charges for mortgages in Taiwan - is satisfactory compared with regional peers, its earnings are slightly weaker than the peer average and its growth plan in China may weaken its capitalisation.

RATING SENSITIVITIES - VIABILITY RATING

Excessive growth and aggressive M&A in China, leading to weaker capitalisation and risk profile, is the most likely trigger for a VR downgrade. A VR upgrade could occur if HNB can sustain higher profitability and stronger internal capital generation in line with better-rated peers but without significantly raising its risk appetite.

The rating actions are as follows:

HNB:

Long-Term IDR affirmed at 'BBB+'; Outlook Stable

Short-Term IDR affirmed at 'F2'

National Long-Term rating affirmed at 'AA-(twn)'; Outlook Stable

National Short-Term rating affirmed at 'F1+(twn)'

Viability Rating affirmed at 'bbb-'

Support Rating affirmed at '2'

Support Rating Floor affirmed at 'BBB+'

((Bangalore Ratings Team, Hotline: +91 80 6677 2513 Debanjali.Ghosh@thomsonreuters.com, Group id: BangaloreRatings@thomsonreuters.com, Reuters Messaging: Debanjali.Ghosh.reuters.com@reuters.net))

Keywords: Fitch Affirms Taiwan's Hua Nan Bank at 'BBB+'; Out