...HONG KONG (Standard & Poor's) Jan. 26, 2016--Standard & Poor's Ratings Services said today said today that the Formosa Plastics group's proposed investment in a U.S.-based chemical project has no rating impact. The group, which consists of four core members including Formosa Plastics Corp., Formosa Chemicals & Fibre Corp., Nan Ya Plastics Corp. and Formosa Petrochemical Corp. (all rated ###+/Stable/--; cnA+/--/--), is evaluating an investment of about US$9 billion in a chemical plant located in the State of Louisiana. We believe the Formosa Plastics group has the financial capacity to absorb the additional new debt for the project if it materializes, despite the project's still uncertain ownership structure, regulatory approval, and time line. The Louisiana project will use low-cost shale gas as feedstock to produce ethylene and other chemicals, which we believe will help to diversify the group's market concentration and reduce its reliance on naphtha cracking, thereby reducing volatility...
