Fitch: West China Cement view to negative

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

The company’s long-term issuer default rating, senior unsecured and bonds ratings have been affirmed at BB-, the agency said.

The outlook change reflects the company’s strengthened position in its core Shaanxi market and its improved leverage following the recent equity placement to Anhui Conch Cement Co. Ltd., the most profitable cement company in China, Fitch said.

Collaborating with Anhui Conch will strengthen West China Cement’s market position in Shaanxi, the agency said.

Though West China Cement is the largest player in Shaanxi, Fitch said, but it has a smaller scale compared to Conch, which has greater geographical diversification.

The partnership between Conch and West China Cement can bring about a more rapid transition to a disciplined supply side in the Shaanxi Cement market, the agency said.

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