S&P lifts Formosa to stable

Standard & Poor’s said it revised the outlook on four core companies of Formosa Plastics group to stable from negative.

The agency also said it affirmed the BBB+ long-term corporate credit rating and cnA+ long-term Greater China regional scale rating on these companies – Formosa Plastics Corp., Nan Ya Plastics Corp., Formosa Chemicals & Fibre Corp. and Formosa Petrochemical Corp.

The agency also said it affirmed the BBB+ issue rating and cnA+ Greater China regional scale rating on the senior unsecured notes issued by Nan Ya Plastics (Hong Kong) Corp. Ltd. and guaranteed by Nan Ya Plastics.

The outlook revision reflects a view that the Formosa Plastics group will continue to reduce its debt level and improve its ratio of funds from operations-to-debt to close to 30% over the next four quarters, S&P said.

The stable outlook also considers a view that the group’s four core companies will reduce their exposure to high-risk ventures, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.