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)
Action: Outlook: Negative
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