On March 22, 2004, Standard&Poor's Rating Services revised the outlook on its 'BBB' long-term corporate credit rating on Hon Hai Precision Industry Co. Ltd. (Hon Hai) to positive from stable. At the same time, Standard&Poor's affirmed the credit rating as well as its 'BBB' issue rating on the company's senior unsecured bonds. The outlook revision reflects Hon Hai's sustained solid financial profile, which exhibits strong debt protection measures and robust liquidity, combined with its continuous generation of positive free operating cash flow. The rating on Hon Hai reflects the company's low-cost competitiveness, strong mechanical engineering expertise, consistently solid operating performance, and strong financial profile. However, these factors are moderated by the high degree of the company's
