Moody's may cut HeidelbergCement

Moody's Investors Service said it put HeidelbergCement's corporate family and senior unsecured bond ratings under review for possible downgrade.

The action was prompted by news that HeidelbergCement's majority shareholder may have come under increasing pressure by its banks with regard to his own financing arrangements, Moody's said.

Though the agency said it acknowledges the funding of the Merckle group and HeidelbergCement are arranged separately without direct interaction or link, the indebtedness of the former always has been factored as an overhang on HeidelbergCement's own standing, the agency said.

The review reflects concerns about the potential increasing pressure brought by the level of indebtedness and contingent financial obligation of the majority shareholder, which could indirectly constrain the financial flexibility of the issuer, Moody's said.

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