HONG KONG (Standard&Poor's) Dec. 18, 2006--Standard&Poor's Ratings Services said today that it had affirmed its 'BBB+' long-term corporate credit rating on Taiwan-based Hon Hai Precision Industry Co. Ltd. (Hon Hai). The outlook is stable. At the same time, Standard&Poor's affirmed its 'BBB+' issue rating on the company's convertible bond. "Our ratings reflect Hon Hai's strong competitive position, consistently robust return on capital, improving cash flow, and low leverage," said credit analyst Raymond Hsu. The ratings are somewhat constrained by the high business risks associated with the global contract electronic manufacturing services industry. Complete ratings information is available to subscribers of RatingsDirect, the real-time Web-based source for Standard&Poor's credit ratings, research, and risk
