OREANDA-NEWS. Fitch Ratings has downgraded West China Cement Limited's (WCC) Long-Term Issuer Default Rating and senior unsecured rating to 'B+' from 'BB-', and removed the Rating Watch Positive (RWP) on the ratings. The Outlook on the IDR is Stable. A full list of ratings is at the end of this commentary.

The removal of the RWP follows the termination of Anhui Conch Cement Company Limited's (Conch; A-/Stable) plans to acquire a controlling stake in WCC. The downgrade is driven by WCC's increased leverage in the current weak operating environment. The Stable Outlook reflects Fitch's expectation that cement prices and volumes in WCC's key markets - and hence its financial performance - are unlikely to deteriorate.