Fitch rates China Man-Made

Fitch Ratings said it assigned China Man-Made Fiber Corp. a national long-term senior unsecured rating of BBB-(twn) and a short-term national rating of F3(twn).

The outlook on the long-term rating is stable.

Fitch said the ratings reflect the company's robust position in Taiwan's ethylene glycol market, where high barriers to entry substantially reduce competitive risks from new entrants. The ratings also consider the company's strong and long-standing customer relationships and the material improvements in its financial profile resulting from substantial debt reduction since 2003.

The company's strengths are tempered by cyclicality and competitive risks in the industry, by the low margins of its polyester operation, and by the threat to cash flows arising from non-core investment activities.

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