Fitch revises Baowu view to positive

Fitch Ratings said it revised China Baowu Steel Group Corp. Ltd.'s outlook to positive from stable while affirming the group's long-term foreign- and local-currency issuer default ratings and senior unsecured rating at A. The agency also revised the outlook of Baowu's 62.29% owned subsidiary, Baoshan Iron & Steel Co. Ltd., to positive and affirmed the long-term foreign-currency IDR at A.

“The positive outlook reflects our expectation that Baowu's leverage will trend downwards to below our positive trigger in the medium term. It is also supported by Baowu's significant expansion in operating scale through continued consolidation of domestic steel makers, improved business diversification and vertical integration, a resilient financial profile through the industry cycle despite the volatility of the commodity market, and strong profitability and free cash flow generation,” Fitch said in a press release.

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