Strong operating efficiency and product diversity. Strong domestic market position in the petrochemical and oil refining industries. High-risk non-core investments. Highly cyclical commodity chemical industry. Asset concentration and rising regulatory risk on environmental protection. Weak cash flow adequacy for the current ratings. Anticipated improvement in the group's leverage, due to improving profitability and debt reduction efforts. Commitment on deleveraging and reduction of ownership in Formosa Ha Tinh Steel Corp. Disposable investment enhances its financial flexibility. The rating outlook is stable, based on our assessment that the Formosa Plastics Corp. (FP) group will continue to lower its debt through its operating cash flows and proceeds from the disposal of shares in group member companies and repayments of intercompany loans. This should
