Fitch upgrades Weichai, debt to BBB+

Fitch Ratings said it upgraded Weichai Power Co., Ltd.'s long-term issuer default rating to BBB+ and senior unsecured rating to BBB+ from BBB.

The outlook is stable.

The rating on the dollar-denominated notes issued by its wholly owned subsidiary, Weichai International Hong Kong Energy Group Co., Ltd., was also upgraded to BBB+ from BBB.

Fitch said the upgrade comes after Weichai demonstrated stable financials and FFO margins, combined with low leverage, healthy liquidity and strong debt-service coverage.

“We believe the company has proved its strong financial capacity for debt repayment and shown discipline in maintaining a sturdy financial structure, which will help withstand shocks during potential economic downturns. The company has made incremental progress on technology leadership, market position and diversification since our initial rating in September 2015,” the agency said in a news release.

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