Fitch assigns West China Cement, notes BB

Fitch Ratings said it assigned a BB long-term foreign-currency issuer default rating to West China Cement Ltd., along with an expected BB rating to its proposed senior unsecured notes due 2016.

The outlook is stable.

The proceeds will be used to repay existing debt and for capacity expansion via new plants and acquisitions, Fitch said.

The ratings reflect the company's sustainably high operating profit margin supported by its dominant market position in the niche southern Shaanxi Province in China, the agency said.

The ratings are constrained by its small operating scale and the lack of geographic diversification, Fitch said.

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