OREANDA-NEWS. Fitch Ratings has revised the Outlook on world's largest aluminium producer China Hongqiao Group Limited's (Hongqiao) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) to Negative from Stable, and affirmed the ratings at 'BB'. At the same time, Fitch has affirmed Hongqiao's senior unsecured ratings and ratings on the outstanding USD400m 7.625% senior unsecured notes due 2017 and USD300m 6.875% senior unsecured notes due 2018 at 'BB'.

The Outlook revision follows Hongqiao's persistent high debt-funded capex, which has resulted high negative free cash flow (FCF) and financial leverage exceeding Fitch's threshold for the 'BB' rating.