Research Update: Taiwan Power Co. Rating Lowered To 'A+' On Weakening Financial Profile; Outlook Negative Aug 05

Standard & Poors, August 2005

Abstract
On Aug. 16, 2005, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Taiwan Power Co. (Taipower) to 'A+' from 'AA-' and lowered its short-term rating on the company to 'A-1' from 'A-1+'. The outlook on the long-term rating is negative. The downgrade reflects Taipower's weakening financial profile and the increasingly challenging operating conditions the company faces. These negative factors are counterbalanced by Taipower's dominant position as Taiwan's sole vertically integrated power producer and its monopoly status in the transmission and distribution sectors, limited competition in the power generation sector, and strong government ownership. The government of Taiwan (AA-/Negative/A-1+) currently owns 94% of the company. Taipower's financial profile has deteriorated over the past few years, and is...

Companies mentioned in this report are: Taiwan Power Co.,Taiwan (Republic of China) (Unsolicited Ratings)
Action: Downgraded
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.

Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.

Taiwan Power Co.,Taiwan (Republic of China) (Unsolicited Ratings)

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