S&P lifts West China Cement view to stable

Standard & Poor's said it revised the outlook on West China Cement Ltd. to stable from negative.

The agency also said it affirmed the company's B+ long-term corporate credit rating and the B+ long-term issue rating on the company's senior unsecured notes.

In line with the outlook revision, S&P said it raised the long-term Greater China regional scale ratings on West China Cement and the notes to cnBB from cnBB-.

The agency also said it revised the outlook because it expects the company's improved liquidity position to enhance its financial flexibility for the next 12 months.

The ratings reflect the company's small operating scale, single product and geographic concentration and exposure to cyclical demand and volatile raw material costs, S&P said.

The company's good market position in China's Shaanxi province, particularly in southern Shaanxi, and its efficient operations moderate these weaknesses, the agency said.

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