Moody’s changes Formosa companies to positive

Moody's Investors Service said it revised the outlooks of the four companies that together comprise the Formosa group, namely 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 Baa1 issuer ratings for the four entities.

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.

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

"The change in ratings outlook to positive from stable reflects our expectation that the improved credit profile of the four Formosa-related companies, on a combined basis, will likely be sustained over the next 12-18 months, driven by continued robust earnings and operating cash flows," Moody's vice president and senior credit officer Franco Leung said in a news release.

© 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.