Fitch: West China unaffected

Fitch Ratings said that West China Cement Ltd.'s low unrestricted cash balance at the end of the first half of 2012 of RMB 111.4 million is not an immediate concern because the company will likely start generating free cash flows as it scales back its capex.

Furthermore, the agency said the company should be able to roll over its short-term bank borrowings given the asset-based lending nature of the Chinese onshore market.

Fitch said it expects the company to be able to deleverage meaningfully by the end of 2013 as average selling prices and margins improve, capex falls and new production facilities come on-stream.

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