S&P lifts West China Cement

S&P said it raised the long-term corporate credit rating on West China Cement Ltd. to B+ from B.

The agency also said it raised the long-term issue rating on the company's outstanding senior unsecured notes to B+ from B.

S&P also said it raised the long-term Greater China regional scale ratings on West China Cement and the notes to cnBB from cnB+.

The outlook is stable.

The upgrades reflect the company’s expected improvements in liquidity and profitability over the next 12 months, the agency explained.

West China Cement’s liquidity position already has improved because of much stronger operating cash flows than originally anticipated due to the company's ongoing efforts to reduce costs and higher cement prices in Southern Shaanxi, S&P said.

The agency also said it sees no impact on the company’s operations since the termination of Anhui Conch Cement Co.'s acquisition offer.

Instead, West China Cement is collaborating with Anhui Conch, its second-largest shareholder, S&P said, and implementing various cost control measures to improve operating efficiency.

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