S&P rates Formosa bonds

Standard & Poor's assigned its BBB+ issue ratings to proposed senior unsecured exchangeable bonds due 2011 to be issued by Formosa Plastics Corp. (foreign currency rating BBB+/stable/--), Nan Ya Plastics Corp. (foreign currency rating BBB+/stable/--) and Formosa Chemicals & Fibre Corp. (foreign currency rating BBB+/stable/--).

S&P also assigned its BBB issue rating to a proposed senior unsecured convertible bond due 2011 to be issued by Formosa Petrochemical Corp. (foreign currency rating BBB+/stable/--).

The ratings reflect the group's high level of integration, low cost structure, large-scale production facilities, leading competitive position in Taiwan and improved financial profile over the past few years, S&P said.

These factors are partly offset by the group's exposure to volatile price movements in the petrochemical and oil refining businesses and a relatively large debt burden.

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