Fitch upgrades Wanhua Chemical

Fitch Ratings said it upgraded Wanhua Chemical Group Co., Ltd.'s long-term foreign- and local-currency issuer default ratings to BBB from BBB-.

The outlook is stable.

The agency also said it upgraded the company's senior unsecured rating to BBB from BBB- and the rating on the ¥1 billion 4.5% senior unsecured notes due 2017 issued by Wanhua Chemical International Holding Co., Ltd. to BBB from BBB-.

The upgrades were driven mainly by significant improvement in Wanhua Chemical's financial profile and business diversification following the successful ramp-up of its Yantai operation, Fitch said.

The stable outlook reflects an expectation that both Wanhua Chemical and its parent, Wanhua Industrial Group Co. Ltd., will remain free cash flow positive going forward, Fitch said.

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