The ratings on Hon Hai Precision Industry Co. Ltd. reflect the company's strong competitive position in the global electronics manufacturing services (EMS) industry, low cost, unrivalled vertically integrated production model, and modest debt usage. The company's increasing business risks associated with the global contract EMS industry and continuing margin pressures partly constrain the ratings. In our view, Hon Hai's position as the world's largest EMS provider continues to strongly support the ratings on the company. Hon Hai has established a strong customer base with major global players in a wide range of electronics products, which partly offsets its customer concentration risk. The company continued to expand faster than its peers with revenue growth of 16% year on year in the
