S&P ups units of Formosa Plastics

S&P said it raised its long-term issuer credit rating on the four core members of Formosa Plastics group (FP group) to A- from BBB+.

The four companies are Formosa Plastics Corp., Nan Ya Plastics Corp., Formosa Chemicals & Fibre Corp. and Formosa Petrochemical Corp. At the same time, S&P raised the issue rating on the senior unsecured notes issued by Formosa Group (Cayman) Ltd. and unconditionally and irrevocably guaranteed by the four core companies to A- from BBB+.

“The upgrade reflects our view the FP group has lowered its financial leverage, which it could sustain over the next one to two years supported by improved profitability and cash flow generation,” said S&P credit analyst Ronald Cheng in a news release.

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