S&P rates Taiwan plastics firms

Standard & Poor's said it assigned its BBB+ foreign currency corporate credit ratings to Formosa Plastics Corp., Nan Ya Plastics Corp., Formosa Petrochemical Corp., and Formosa Chemicals & Fibre Corp. The outlooks on all four companies are stable.

All four companies are key members of the Formosa Plastics Group, one of the largest business groups in Taiwan. The group, while diverse, focuses mainly on the petrochemical and plastics industry.

S&P said the ratings reflect the group's high level of integration, low cost structure, large-scale production facilities, leading competitive position in Taiwan, and improvement in the group's financial profile over the past few years. These factors are partly offset by the group's exposure to volatile price movements in the petrochemical and oil refining businesses, and a relatively large debt burden.

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