Fitch affirms China Netcom

Fitch Ratings said it affirmed China Netcom (Group) Corp. Ltd.'s long-term foreign-currency issuer default rating at BBB+.

The outlook remains stable.

The rating reflects the group's position as the second largest fixed line operator in China and its dominant market share in the country's north provinces, Fitch said. The rating also considers the company's sound financial profile supported by healthy cash flows and moderate leverage, the agency said.

The rating also reflects the downward pressure on tariffs, volumes and margins due to stiff competition, regulatory uncertainty and industry restructuring, Fitch added.

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