S&P cuts HeidelbergCement outlook to negative

Standard & Poor's said it revised its outlook on HeidelbergCement AG to negative from stable.

At the same time, the agency said it BBB-/A-3 long- and short-term corporate credit and all issue ratings were affirmed.

The outlook revision reflects fresh concerns about covenant headroom; heavy refinancing needs, which will need to be addressed by mid-2010; its reassessment of the group's future prospects in light of its half-year results published in August; and increasingly negative news from a number of key mature markets in Europe, including the United Kingdom, which compound ongoing severe conditions in the United States, the agency said.

According to S&P, the ratings on HeidelbergCement are supported by its strong market positions as a leading global player in heavy construction materials, extensive geographic and market diversity, and good profitability, which translate into solid cash flow generation.

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