...June 2, 2020 HONG KONG (S&P Global Ratings) June 2, 2020--S&P Global Ratings said today that tough operating conditions leave little rating headroom for the operating performance of Taiwan-based Formosa Plastics group to deviate from our base-case assumptions. That's despite the potential for planned debt reductions and a gradual rebound in oil prices to support the consolidated credit profile of the group's four core companies--Formosa Plastics Corp., Nan Ya Plastics Corp., Formosa Chemicals & Fibre Corp., and Formosa Petrochemical Corp. The long-term issuer credit rating on the four core companies is 'A-' with a negative outlook. Downside risks to product margins will remain high throughout 2020, especially for commodity chemicals, if the COVID-19 pandemic does not subside in the second half of the year under our base case. That's despite the likelihood that downstream manufacturers such as Formosa Plastics and Nan Ya Plastics will see spreads improve as demand for their products resumes...
