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Taiwan Ratings Upgrades Formosa Plastics Group
Taiwan Ratings lifts Formosa Plastics Group's credit rating to twAA, forecasting 2026 EBITDA at NT$210 billion.
In brief
Taiwan Ratings lifts Formosa Plastics Group's credit rating to twAA, forecasting 2026 EBITDA at NT$210 billion. Taiwan Ratings upgraded Formosa Plastics Group's credit rating to twAA, predicting 2026 EBITDA will reach NT$210 billion. Originally reported by BigGo Finance.
Rating Upgrade
Taiwan Ratings upgraded Formosa Plastics Group's long-term issuer credit rating to twAA from twAA-.
EBITDA Forecast
Taiwan Ratings forecasts Formosa Plastics Group's 2026 EBITDA hitting NT$190 billion to NT$210 billion.
Liquidity Assessment
Taiwan Ratings raised liquidity assessment to 'very strong' from 'adequate'.
Business Mix Shift
Electronic materials and components expected to rise to 40%-50% of EBITDA by 2027-2028.
Borrowing Leverage
Borrowing-to-EBITDA ratio expected to stay below 0.5x over next two years.
Refining Margins
Middle East refinery shutdowns expected to boost Formosa's refining margins resilience.
Commodity Chemicals
Commodity chemicals business expected to remain loss-making for next one to two years.
The short version
Taiwan Ratings upgraded Formosa Plastics Group's credit rating to twAA, predicting 2026 EBITDA will reach NT$210 billion.
