Moody’s rates Formosa companies Baa1

Moody's Investors Service said it assigned first-time Baa1 issuer ratings to the four entities that comprise the Formosa group of companies – Formosa Plastics Corp., Nan Ya Plastics Corp., Formosa Chemicals & Fibre Corp. and Formosa Petrochemical Corp.

The outlook is stable.

In assigning the Baa1 ratings, Moody's said it took the approach of assessing the four companies on a group basis, even though they do not legally constitute a group or fall under any formal group structure.

The ratings reflect the combined strength of the four companies, each of which is assigned the same rating, the agency said.

The four companies share overall business strategies and have jointly invested in and guaranteed the debt of associated companies, such as Formosa Ha Tinh Steel Corp., Moody’s said.

The ratings also consider the companies' long track records, large operating scales, integrated business models and strong market positions in the domestic petrochemical market, the agency said.

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