S&P ups HeidelbergCement

S&P said it raised its ratings for HeidelbergCement AG and its debt to BBB from BBB-.

The agency noted HeidelbergCement substantially lowered its debt in 2020, despite the pandemic, thanks to strong cash flow. HeidelbergCement's reported leverage improved to 1.86x, between its 1.5x-2x target and down from 2.35x in 2019.

“We forecast that HeidelbergCement will continue to post resilient operating performance in most of its regions over 2021-2022 and maintain its conservative balance sheet management, with our key credit metric of funds from operations (FFO) to debt at about 29%-32% in 2021-2022, which is commensurate with a BBB rating,” S&P said in a press release.

The outlook is stable.

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