Fitch lowers Saint Gobain

Fitch Ratings said it downgraded Compagnie de Saint-Gobain's (Saint Gobain) long-term issuer default rating and senior unsecured rating to BBB from BBB+.

The company's short-term issuer default rating also was affirmed at F2.

The outlook is stable.

The downgrades reflect a view that Saint Gobain's business and financial profiles are no longer commensurate with a BBB+ rating, Fitch said.

Earnings have suffered from the challenging operating environment over the past two years as a result of a challenging operating environment, particularly in its European markets, the agency said.

Credit metrics are expected to remain weaker than expected for a BBB+ rating despite some improvements in earnings from the group's successful cost-cutting program, Fitch said, and given a slow recovery in end-markets over the next two years.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.