Moody's ups HeidelbergCement

Moody's Investors Service said it upgraded HeidelbergCement's corporate family and probability of ratings to Ba2 from Ba3, its senior long-term bond/debenture rating to Ba3 from B1 and senior medium-term notes program prospective rating to Ba3 from B1.

The upgrades were prompted by the relatively positive performance the company has shown in 2010 and the expectation that the overall environment in the company's markets will remain stable to slightly positive, Moody's said.

The ratings also reflect the commitment of HeidelbergCement's management to further reduce debt, and the expectation of positive free cash flow in the fourth quarter and improvement in overall profitability in 2011.

The debt-to-EBITDA ratio was 4.7 times per last 12 months ending Sept., Moody's added.

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