Fitch: HeidelbergCement unchanged

Fitch Ratings said that there will be no immediate rating impact on HeidelbergCement AG's long-term issuer default rating of B, following the company's announcement of a planned capital increase.

The outlook is negative.

According to Fitch, HeidelbergCement's and subsidiary Hanson plc's senior unsecured debt remains at CCC while the recovery rating on the senior unsecured debt is RR6, reflecting poor recovery prospects in the event of a default, in light of high total debt levels and over 55% of total debt being secured.

"While a capital increase would be positive for HeidelbergCement's creditors, there is no certainty that the effort will be successful as the offering is not underwritten," said Elisabetta Zorzi, senior director in Fitch's corporate group.

"Further, major refinancing risk persists with banks benefitting from a security package, complicating HeidelbergCement's access to new funding."

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