Moody's ups Dyckerhoff outlook to positive

Moody's Investors Service said it changed to positive from stable the outlook on the Ba1 issuer rating and corporate family rating of Dyckerhoff AG and the Ba1 senior guaranteed debt rating of its U.S. subsidiary Lone Star Industries Inc.

The agency said the ratings and positive outlook reflect Dyckerhoff's strongly improved operating results in 2005, its improved 2005 adjusted leverage ratio to of 27%, the ongoing flexibility afforded to the group through free cash flow generation and flexible capex requirements; the increasing contribution from the company's advantageously positioned businesses in growth economies in Eastern Europe; Moody's expectation that there will be no further substantial decline of the construction industry in Germany and the profile of parent company Buzzi Unicem SpA.

The ratings, however, also take into account the group's complex structure, limited regional diversification, increased reliance on contributions from the profitable U.S. assets and the persistent weakness of the German market, which continues to dampen overall performance, the agency said.

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