S&P affirms Formosa Plastics

Standard & Poor's said it affirmed its BBB+ long-term corporate credit ratings on Formosa Plastics Corp., Nan Ya Plastics Corp., Formosa Chemicals & Fibre Corp. and Formosa Petrochemical Corp., the four core members of the Formosa Plastics group.

The outlook on the long-term ratings is stable.

"The ratings continue to reflect the group's highly integrated production, economies of-scale, strong market position in the petrochemical industry, number two position in Taiwan's duopoly oil refinery and marketing sector and satisfactory cash flow protection measures," said credit analyst Frank Fan.

Counterbalancing factors include the group's exposure to volatile pricing in the commoditized petrochemical and oil refining businesses, as well as potential risks pertaining to its asset concentration and diversification into high-risk DRAM operations, 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.