Fitch rates Taiwan Semiconductor foreign currency debt A-

Fitch Ratings said it assigned an A- senior unsecured foreign currency debt rating to Taiwan Semiconductor Manufacturing Co. Ltd.

The outlook is stable.

The rating reflects Taiwan Semiconductor's dominant market position in the dedicated integrated circuit foundry industry, the company's strong product mix, its firm and diversified customer relationships, solid free cash flow generation, significant liquidity, very conservative balance sheet and ample financial flexibility, the agency said.

However, the rating is constrained by Taiwan Semiconductor's reliance on outsourcing orders, the industry's requirement for continuous significant capital expenditure and investment in research and development, as well as operating volatility due to the highly cyclical nature of the sector.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.