Moody's stabilizes West China Cement view

Moody's Investors Service said it revised the outlook to stable from positive and affirmed West China Cement Ltd.'s Ba2 corporate family rating and senior unsecured rating.

"The outlook change to stable reflects our expectation that WCC's expansion strategy in Africa will elevate its leverage over the next 12-18 months beyond our earlier forecast, amid business volatility during its execution," said Roy Zhang, a Moody's vice president and senior analyst , in a press release.

"The risks are balanced by the company's healthy cash flow generation from the domestic market and adequate liquidity. WCC will likely maintain its strong liquidity and moderate leverage, as measured by debt to EBITDA, below 3x over the next 12-18 months. This leverage level is in line with its rating category, and hence the rating affirmation at Ba2," added Zhang.

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