Well-established market position Low cost, unrivalled vertically integrated production model Prudent financial policy with modest debt usage Increasing industry risks Persistent stress on margins The ratings on Hon Hai Precision Industry Co. Ltd. reflect the company's strong competitive position in the global electronics manufacturing services (EMS) industry, low cost, unrivalled vertically integrated production model, and modest debt usage. The company's increasing business risks associated with the global contract EMS industry and continuing margin pressures partly constrain the ratings. In our view, Hon Hai's position as the world's largest EMS provider continues to strongly support the ratings on the company. Hon Hai has established a strong customer base with major global players in a wide range of electronics products, which partly
