Fitch affirms HeidelbergCement issuer default rating

Fitch Ratings said it affirmed HeidelbergCement AG's long-term issuer default rating at BB+ and short-term issuer default rating at B.

The outlook on the long-term issuer default rating is stable.

The affirmation reflects the company's performance in the first nine months of the year, with a solid top-line increase and a progression of EBITDA, despite some pressure on margins, according to the agency.

"Fitch expects that HeidelbergCement will continue deleveraging and gradually improve its credit metrics," Lorenzo Re, a director at Fitch, said in a statement.

"Cost inflation and less favorable price trends are putting pressure on margins. However, thanks to cost-cutting measures and to the increase in cement volumes sales, the agency expects that HeidelbergCement will be able to maintain or slightly improve EBITDAR in both 2011 and 2012."

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