Low-cost advantage; Strong mechanical engineering expertise; Global logistic capability; Consistently solid operating performance; and Satisfactory financial profile. High degree of customer concentration; Exposure to rapid product cycles in volatile end-markets; and Ongoing pressure on margins. The ratings on Hon Hai Precision Co. Ltd. (Hon Hai) reflect the company's low-cost competitiveness, strong mechanical engineering expertise, consistently solid operating performance, and satisfactory financial profile. However, these factors are moderated by the company's high degree of customer concentration, its exposure to short product cycles in volatile end-markets, and ongoing pricing pressure. Hon Hai is the world's largest manufacturer of personal computer (PC) connectors and enclosures. It is also the third-largest global provider of electronic manufacturing services (EMS) for original equipment manufacturers (OEMs). Despite
