S&P raises Taiwan's Hon Hai Precision outlook

Standard & Poor's raised its outlook on Taiwan's Hon Hai Precision Industry Co. Ltd. to positive from stable and confirmed its ratings including its senior unsecured bonds at BBB.

S&P said the revision reflects Hon Hai's sustained solid financial profile, which exhibits strong debt protection measures and robust liquidity, combined with its continuous generation of positive free operating cash flow.

Hon Hai's rating reflects its low-cost competitiveness, strong mechanical engineering expertise, consistently solid operating performance and strong financial profile, S&P added.

However, these factors are moderated by the high degree of the company's customer concentration, its exposure to short product cycles in volatile end-markets, and ongoing pricing pressure.

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