Outlook On Formosa Plastics Group Companies Revised To Negative On Factory Closures; Ratings Affirmed Aug 11

Standard & Poors, August 2011

Abstract
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: Affirmed
Action: Outlook: Negative

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.

Formosa Plastics Corp.,Formosa Chemicals & Fibre Corp.,Formosa Petrochemical Corp.,Nan Ya Plastics Corp.,Nan Ya Plastics (Hong Kong) Corp. Ltd.

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