Investment Grade ratings for HeidelbergCement
Moody's and S&G Global Ratings both recognize firm's strong business profile and improved creditworthiness
THE credit rating agency Moody’s has assigned a Baa3 company rating to HeidelbergCement. The Investment Grade classification is associated, in particular, with the company’s strong business profile after the Italcementi acquisition and its improved creditworthiness.
Moody’s is the second rating agency to assign an Investment Grade rating to the cement giant following a similar move by S&P Global Ratings, who assigned a BBB-/A-3 rating earlier this week.
‘We welcome the positive rating decisions by Moody’s and S&P,’ said Dr Bernd Scheifele, chief executive officer of HeidelbergCement. ‘They are further proof of our strong operating performance and cash flow generation so far this year. We will leverage the improved ratings to significantly enlarge our investor base and improve our financing conditions.’
In its rationale for the rating, Moody’s pointed to HeidelbergCement’s robust business profile supported by their large-scale, good geographical and product diversification. In addition, the agency said the recently completed acquisition of Italcementi had reinforced the company’s business profile, adding cement capacity in emerging markets and a well-invested asset base.
