Fitch rates Wuhan Iron & Steel BBB-

Fitch Ratings said it to assigned to China-based Wuhan Iron & Steel Co. Ltd. BBB- long-term foreign- and local-currency issuer default ratings and F3 short-term foreign- and local-currency ratings. The outlook is stable.

The ratings reflect Wuhan's healthy business profile in terms of sales and production capacity, the improving structure of its product mix and its strengthened economies of scale, the agency said. The ratings also take into consideration the company's strong financial profile, including its low financial leverage, stable profitability and cash generating capacity, and the company's expanded revenue base and enhanced margins following the acquisition of its parent company's assets in 2004.

Total debt net of cash to operating EBITDAR was 0.2x at the end of 2004, with a cash balance of 3.92 billion yuan.

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