Fitch ups HeidelbergCement

Fitch Ratings said it upgraded HeidelbergCement AG's long-term issuer default rating and senior unsecured rating to BB from BB-. Its short-term issuer default rating was affirmed at B and a senior unsecured rating of BB was assigned to its €650 million 6¾% notes due in December 2015, issued under its euro medium-term note program.

The agency said that tough market conditions in mature markets, especially in western Europe, are somewhat mitigated by still sound trading conditions in emerging markets.

Improving conditions allowed the company to progressively increase operational cash flow, ultimately resulting in modest free cash flow generation and a gradual improvement of credit metrics, Fitch said.

The upgrade also is supported by the recent refinancing efforts undertaken by the company, the agency said.

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