Moody's lowers West China Cement view to negative

Moody's Investors Service said it changed the outlook for West China Cement Ltd.'s Ba3 corporate family and senior unsecured bond ratings to negative from stable.

At the same time, Moody's affirmed both ratings.

Moody's said the change follows the company's release of its annual results for 2011 and its announcement of its acquisition of Shifeng Cement.

"The negative outlook reflects Moody's concerns that WCC's credit metrics, especially interest coverage, could weakened because of its fast expansion against the backdrop of weak cement prices," Moody's analyst Jiming Zou said in a news release.

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