S&P: West China Cement stays on CreditWatch Positive

S&P: West China Cement stays on CreditWatch Positive
Published: 01 March 2016


Standard & Poor's (S&P) Ratings Services said that it continues to keep the ratings on West China Cement on CreditWatch with positive implications while the company awaits regulatory approval to: (1) issue new shares to Anhui Conch Cement Co, and (2) acquire the latter's cement assets.

"We are still awaiting details of the transaction. We also need to further clarify with both management teams regarding WCC's capital management, growth strategy, board composition, and any change to WCC's existing risk management framework once the transaction is completed. The transaction could take more than three months to be completed due to the general offer," the rating's agency said.
 
The transaction would make Anhui Conch the largest shareholder of WCC with at least a 51 per cent stake from the current 21.17 per cent. On 19 January 2016, shareholders of WCC approved the proposed acquisition at an extraordinary general meeting.

S&P added: "We have determined, based solely on the developments described herein, that no rating actions are currently warranted. Only a rating committee may determine a rating action and, as these developments were not viewed as material to the ratings, neither they nor this report were reviewed by a rating committee."