The liquidity cushion of Chang Chun Plastics Co. Ltd. and Chang Chun Petrochemical Co. Ltd. has strengthened. Support will come from positive free cash flow, lower capital expenditure (capex), and a prudent dividend payout policy. We therefore revised our liquidity assessment for the two companies to exceptional from strong. On May 28, 2024, we affirmed our 'BBB+' long-term issuer credit ratings on the two Taiwan-based chemical companies. The stable rating outlook reflects our view that the Chang Chun group can enhance its financial buffer with a net cash position over the next two years. We expect the group to improve profitability moderately in 2024-2025 despite subdued demand and excess capacity from China's chemical firms. The group's lack of integration in
