S&P revises view on Formosa Plastics Group units to negative

S&P said it revised its outlook on the core members of the Formosa Plastics Group to negative from stable and affirmed the A- long-term issuer credit rating on the four units, which are Formosa Plastics Corp., Formosa Petrochemical Corp., Formosa Chemicals & Fibre Corp. and Nan Ya Plastics Corp.

S&P also affirmed the A- issue rating on the senior unsecured notes issued by Formosa Group (Cayman) Ltd. and proportionally guaranteed by the four core companies.

“The negative outlook reflects the material downside risk that the group's ratio of debt to EBITDA could rise above 2x for a prolonged period,” S&P said in a news release.

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