Moody's ups HeidelbergCement notes to Ba1

Moody's Investors Service said it upgraded the provisional Ba2 medium-term note ratings and the Ba2/provisional Ba2 ratings on the notes outstanding to provisional Ba1 and Ba1, respectively, of HeidelbergCement AG and its subsidiaries following the elimination of structural subordination of the notes with the refinancing of HeidelbergCement's bank facility.

The Ba1 corporate family rating and stable outlook remain unchanged.

The upgrade of HeidelbergCement's medium-term notes and bond ratings follows the signing of a new five-year €3 billion revolving credit facility that removes all securities and upstream guarantees contained in the previous facility.

Consequently, Moody's said it views the new facility to rank pari passu with all other outstanding debt in HeidelbergCement's debt waterfall, except for trade claims that remain in first place. This however eliminates the structural subordinated position of the noteholders and consequently brings the ratings of the instruments and the euro medium-term note program at the same level as the corporate family rating, the agency said.

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