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Outlook On Formosa Plastics Group Companies Revised To Negative On Factory Closures; Ratings Affirmed Aug 11
Standard & Poors, August 2011
Several fires have recently affected the manufacturing facilities of Taiwan-based Formosa Plastics group. We expect the Taiwan government's request to temporarily close these and additional facilities to significantly lower the group's profitability and cash flow protection measures over the next two to three quarters. Heightened regulatory risk and rising environmental protection pressures aggravate the group's high asset concentration risk at its Mai-Liao complex. We are revising the outlook on the long-term corporate credit ratings on the four core companies of the Formosa Plastics group to negative from stable and affirming the long-term corporate credit ratings at 'BBB+'. We are also affirming the 'BBB+' issue rating and 'cnA+' Greater China scale rating on the bond issued by Nan Ya Plastics (Hong...
Companies mentioned in this report are: Formosa Plastics Corp.,Formosa Chemicals & Fibre Corp.,Formosa Petrochemical Corp.,Nan Ya Plastics Corp.,Nan Ya Plastics (Hong Kong) Corp. Ltd.
Action: Outlook: Negative
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Research type: News
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Formosa Plastics Corp.,Formosa Chemicals & Fibre Corp.,Formosa Petrochemical Corp.,Nan Ya Plastics Corp.,Nan Ya Plastics (Hong Kong) Corp. Ltd.