S&P raises Formosa Plastics rating to BBB+ for Formosa Plastics stock
Published on 10/20/2026 at 10:23 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSRating upgrade and earnings context
- S&P Global Ratings raised the issuer credit rating to BBB+ on October 19, 2026.
- Formosa Plastics reported TWD 443 billion of third-quarter revenue on October 12, 2026.
- Formosa Plastics had a TWD 476.8 billion market capitalization as of October 20, 2026.
Formosa Plastics stock is carrying a stronger credit profile after S&P Global Ratings raised the issuer credit rating on Formosa Plastics Corp. to BBB+ from BBB on October 19, 2026, with a stable outlook. The same release cited lower leverage and stronger liquidity as the main support for the action.
Quarterly earnings show the pressure
Formosa Plastics reported TWD 443 billion of consolidated revenue for the third quarter of 2026, down 6.2 percent from the second quarter, according to its filing carried by FinancialFilings on October 12, 2026. The company reported a TWD 4.2 billion operating loss for the quarter, while consolidated after-tax profit reached TWD 5.7 billion and earnings per share attributable to the parent was TWD 0.90.
For the first nine months of 2026, revenue reached TWD 1,335 billion, down 0.6 percent year over year. After-tax profit was TWD 19.6 billion, compared with a TWD 7.2 billion loss in the first nine months of 2025, and parent-attributable earnings per share reached TWD 3.09.
What does the upgrade change?
The rating action gives investors a balance-sheet counterweight to weak commodity-chemical margins. S&P expects the combined debt-to-EBITDA ratio of the four Formosa companies to remain below 0.5 times over the next one to two years, while it identifies chemical oversupply and soft downstream demand as key risks. S&P also forecasts combined revenue growth of 15 percent to 18 percent in 2026, followed by a 3 percent to 8 percent decline in 2027 as oil and chemical prices normalize.
Three dated signals for the stock
On October 12, 2026, Formosa Plastics disclosed third-quarter revenue of TWD 443 billion and parent-attributable earnings per share of TWD 0.90 through FinancialFilings. On October 13, 2026, Masterlink Securities upgraded Formosa Plastics to Buy from Hold and set a TWD 65.00 target, as reported by MarketScreener. On October 19, 2026, S&P Global Ratings raised the credit rating to BBB+.
Stock valuation and market context
Formosa Plastics had a market capitalization of TWD 476.8 billion and a 52-week range of TWD 36.50 to TWD 89.40 as of October 20, 2026. The stock stood at TWD 74.90 at 1:30 p.m. Taipei time on the Taiwan Stock Exchange. The rating upgrade improves the credit narrative, but the earnings figures show that product spreads and demand remain central to the equity case.
Formosa Plastics stock facts
- Company: Formosa Plastics Corporation
- ISIN: TW0001301000
- Ticker: 1301
- Primary exchange: Taiwan Stock Exchange
- Primary-exchange price: TWD 74.90 as of October 20, 2026, 1:30 p.m. Taipei time
- Market capitalization: TWD 476.8 billion (as of October 20, 2026)
- 52-week range: TWD 36.50-89.40 (as of October 20, 2026)
- Sector / Industry: Commodity Chemicals
Market context: Market report TAIEX.
