S&P ups HeidelbergCement view to positive

Standard & Poor's said it revised the outlook on HeidelbergCement AG to positive from stable and affirmed its long-term corporate credit rating at BB- and short-term corporate credit rating at B.

The outlook change reflects a view that HeidelbergCement's credit metrics will gradually improve toward levels commensurate with a higher rating in 2011, S&P said.

Specifically, the agency said it anticipates that the ratio of funds from operations to debt will improve above expectations.

S&P also said it anticipates that the company will reduce its debt through asset disposals and free cash flow. Cash generation should be supported by a combination of cost savings, stabilization in mature markets and beneficial effects of the U.S. infrastructure stimulus package, the agency said.

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