S&P changes Formosa to positive

S&P said it revised the outlook on its long-term corporate credit ratings on the four core companies of the Formosa Plastics group, including Formosa Plastics Corp., Nan Ya Plastics Corp., Formosa Chemicals & Fibre Corp. and Formosa Petrochemical Corp. to positive from stable.

At the same time, the agency affirmed the BBB+ issue credit rating on the senior unsecured notes issued by Formosa Group (Cayman) Ltd. and unconditionally and irrevocably guaranteed by the FP group.

"The outlook revision reflects our view that the FP group is likely to maintain its improved profitability and cash flow and further lower its debt over the next one to two years with favorable market conditions and lower capital expenditures," S&P credit analyst Danny Huang said in a news release.

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