...- Major businesses of Taiwan-based Formosa Plastics (FP) group will continue to face weak demand and limited recovery in profitability in 2021 and 2022, given the global economic slowdown and oil price volatility amid the COVID-19 pandemic. - Weak operating cash flow and high capital expenditure could keep the group's financial strength, measured by the ratio of debt to EBITDA, materially below what we had earlier assumed for a prolonged period, despite a gradual recovery from the COVID-19 shock. - We are lowering the long-term issuer credit ratings on the four core members of the FP group to '###+' from 'A-'. At the same time, we are lowering the issue ratings on the senior unsecured notes issued by Formosa Group (Cayman) Ltd. and unconditionally and irrevocably guaranteed by the four core companies to '###+' from 'A-'. - The rating outlook is stable, reflecting our view that recovering profitability and delayed capital expenditure will enable the FP group to keep its ratio of debt to...
