S&P: HeidelbergCement jumps to investment grade

Standard & Poor's said it raised its long-term corporate credit rating on HeidelbergCement AG to BBB- from BB+, reflecting further improvements in the group's financial profile in second-quarter 2006.

At the same time, the agency said it raised its short-term ratings and senior unsecured debt ratings on HeidelbergCement and related entities to A-3 from B and to BBB- from BB+.

The outlook is stable.

S&P noted that the ratings on HeidelbergCement reflect the group's moderate financial structure and the cement industry's cyclicality and heavy capital intensity, adding that these factors are offset by the company's large size, broad geographical diversity, strong market positions and sustained ability to generate healthy FFO.

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