22 December 2006 05:28 [Source: ICIS news]
SINGAPORE (ICIS news)--Standard & Poor’s has affirmed its BBB+ long-term corporate credit ratings on four companies from the Formosa Plastics group with a long-term stable ratings outlook, it said on Friday.
The companies are Formosa Plastics, Nan Ya Plastics, Formosa Chemicals & Fibre, and Formosa Petrochemical Corp.
"The ratings continue to reflect the group’s highly integrated production, economies of scale, strong market position in the petrochemical industry and its satisfactory cash flow protection measures," credit analyst Frank Fan said in a statement.
The company also maintained its No 2 position in Taiwan’s duopoly oil refinery and marketing sector, he added.
However, he said potential risks exist such as the group’s exposure to volatile pricing in the commoditised petrochemical and oil refining businesses, concentration of its assets and its diversification into high-risk DRAM (dynamic random access memory) operations.
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