Bulletin: Formosa Plastics Group Ratings Unaffected By Operation Commencement Of Formosa Ha Tinh Steel

HONG KONG (S&P Global Ratings) May 26, 2017--S&P Global Ratings today said that its ratings and outlook on the Formosa Plastics group are not affected by the recent operation commencement of Vietnam-based Formosa Ha Tinh Steel Corp. The group comprises Formosa Plastics Corp., Formosa Chemicals&Fibre Corp., Nan Ya Plastics Corp., and Formosa Petrochemical Corp. (all rated BBB+/Stable/--, cnA+/--) and is the largest shareholder of Formosa Ha Tinh Steel Corp. We believe likely operating losses in the early operating stage that could result in further rounds of capital injection could negatively affect the companies' credit metrics. However, likely improving fundamentals in the regional steel market as well as the strengthening profitability and operating cash flow generation of the Formosa

...HONG KONG (S&P Global Ratings) May 26, 2017--S&P Global Ratings today said that its ratings and outlook on the Formosa Plastics group are not affected by the recent operation commencement of Vietnam-based Formosa Ha Tinh Steel Corp. The group comprises Formosa Plastics Corp., Formosa Chemicals & Fibre Corp., Nan Ya Plastics Corp., and Formosa Petrochemical Corp. (all rated ###+/Stable/--, cnA+/--) and is the largest shareholder of Formosa Ha Tinh Steel Corp. We believe likely operating losses in the early operating stage that could result in further rounds of capital injection could negatively affect the companies' credit metrics. However, likely improving fundamentals in the regional steel market as well as the strengthening profitability and operating cash flow generation of the Formosa Plastics group over the next few quarters could provide a partial buffer for their cash flow protections. Only a rating committee may determine a rating action and this report does not constitute a rating...

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