Fitch: Weichai Power notes BBB

Fitch Ratings said it assigned a long-term issuer default rating of BBB and senior unsecured rating of BBB to Weichai Power Co., Ltd.

Fitch also said it assigned an expected rating of BBB to Weichai’s proposed dollar-denominated senior unsecured notes.

The outlook is stable.

The ratings reflect the company’s leading market position in manufacturing of diesel engines for heavy-duty trucks in China, Fitch said.

It has low operating leverage and strong ability to generate free cash flow, the agency said.

The ratings are constrained by the company’s smaller operating scale and weaker market exposure as compared with peers with BBB ratings, Fitch said.

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