Fitch lowers West China Cement to negative

Fitch Ratings said it revised West China Cement Ltd.'s outlook to negative from stable.

The agency also affirmed its long-term issuer default and senior unsecured ratings at BB-.

The outlook revision reflects continued weak average selling prices of cement in Shaanxi and Xinjiang, the company's core markets,, Fitch said.

If this trend persists, the company may face challenges in repaying its outstanding $400 million notes due in January 2016, the agency said.

Declines in the price of thermal coal - an input of cement - during the same period was unable to offset the impact from weak average selling prices, which were due to overcapacity, Fitch said.

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