Fitch affirms ZTE

Fitch Ratings said it affirmed ZTE Corp.'s long-term foreign-currency and local-currency issuer default ratings at BB+.

The outlook remains stable.

The affirmation reflects the company's strong market position as the second-largest Chinese telecommunications equipment vendor, Fitch said.

The ratings also are underpinned by its strong financial profile, with net adjusted debt-to-EBITDAR ratio of 1.1x at 2007, the agency said.

The ratings are constrained by the company's low operating margin and high proportion of new network contracts in its portfolio, Fitch added.

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