Taiwan-based FP group is likely to maintain relatively strong profitability and cash flow, and further reduce its debt levels over the next one to two years because of favorable market conditions and low capital expenditures. Nonetheless, industry volatility, the group's upcoming investments in the U.S., potential financial support to the group's steel mill investment in Vietnam, and increased cash dividends will test the sustainability of the group's enhanced credit metrics. We are revising our rating outlook on the core members of the FP group to positive from stable to reflect the material likelihood that the group will maintain its ratio of FFO to debt above 45% through business cycles if the group can materially lower its debt. We are also
