Strong operating efficiency and product diversity. Strong domestic market position in the petrochemical and oil refining industries. Higher risk non-core investments. Highly cyclical commodity chemical industry. Asset concentration and rising regulatory risk on environmental protection. Improving cash flow adequacy in 2015-2016. Anticipated improvement in the group's leverage, due to improving profitability and debt reduction efforts. Reduction of ownership in and debt guarantee on Formosa Ha Tinh Steel Corp. Disposable investment enhances its financial flexibility. The rating outlook is stable, based on our assessment that the Formosa Plastics (FP) group will continue to lower its debt through its operating cash flows, repayment of intercompany loans from affiliate companies, and lower debt guarantee for Vietnam-based Formosa Ha Tinh Steel following the completion
