Fitch lifts China Shanshui

Fitch Ratings said it upgraded China Shanshui Cement Group Ltd.'s long-term issuer default rating and senior unsecured debt rating to BB from BB-.

The outlook is stable.

The upgrade was driven by a view that improved industry dynamics in China Shanshui's core markets will continue supporting its profit margin and cash generation, Fitch said.

The improved business profile helps mitigate the company's continued high financial leverage due to capital expenditure and acquisitions, the agency said.

The Chinese cement market has improved since the second half of 2012 following a trough over the previous 12 months, supported by solid demand driven by fixed-asset investments, Fitch said.

The company remains the largest cement producer in Shandong, one of the largest and most economically developed provinces in China, the agency added, and it continues to diversify geographically.

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