Sector Review: Credit Profiles Diverge Among Taiwan's Top Companies As Competition And Consolidation Rise Jul 10

Standard & Poors, July 2010

Abstract
Taiwan's leading high-tech and nontech companies have found some breathing room. Volatility in the local and global economy has calmed sufficiently over the past 12 months to strengthen credit profiles. Healthier balance sheets and improved risk management should enable the companies to better withstand future operating conditions, which remain somewhat uncertain. But as competition and consolidation increases, the credit profiles of Taiwan's top corporations are likely to diverge. According to Standard & Poor's Ratings Services' research, the creditworthiness of Taiwan's top 100 companies--based on 2009 revenues (see appendix)--largely remained at satisfactory to strong levels on our national rating scale. We assessed the credit quality of a growing number of companies to be in 'twa/twA' or higher categories. Industry consolidation and...

Companies mentioned in this report are: Taiwan (Republic of China) (Unsolicited Ratings),China Steel Corp.,Taiwan Power Co.,Yang Ming Marine Transport Corp.,China Airlines Ltd.,Formosa Plastics Corp.,Fortune Motors Co. Ltd.,Taiwan Sugar Corp.,Nanya Technology Corp.,Inotera Memories Inc.,Chimei Innolux Corp.

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: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

Taiwan (Republic of China) (Unsolicited Ratings),China Steel Corp.,Taiwan Power Co.,Yang Ming Marine Transport Corp.,China Airlines Ltd.,Formosa Plastics Corp.,Fortune Motors Co. Ltd.,Taiwan Sugar Corp.,Nanya Technology Corp.,Inotera Memories Inc.,Chimei Innolux Corp.

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