Fitch affirms China Man-Made Fiber

Fitch Ratings said it affirmed China Man-Made Fiber Corp.'s (CMF) national long-term rating at BBB(twn) and national short-term rating at F3(twn).

The outlook on the long-term rating is stable.

Fitch said CMF's ratings are supported by its improvement in financial leverage, its robust position in the Asian chemical material market, as well as its enhancement in cash generation driven by a boom in the ethylene glycol sector.

However, the ratings are constrained by the cyclicality of the industry as well as the competitive risks for CMF's ethylene glycol division, its weak profitability in the polyester segment and its significant level of non-core investments, which are mostly focused on the Taiwanese financial sector, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.