S&P affirms HeidelbergCement

Standard & Poor's said it affirmed its BB+ long-term corporate credit rating on HeidelbergCement AG following the completion of the cement producer's acquisition by Spohn Cement GmbH. At the same time, the rating was removed from Credit Watch. The B short-term rating was affirmed.

The outlook is stable.

The affirmation reflects S&P's expectation that HeidelbergCement's credit ratios will remain consistent with the BB+ rating despite the mostly debt-financed acquisition.

The ratings reflect HeidelbergCement's moderately aggressive financial structure and the cement industry's cyclicality and heavy capital intensity. These factors are offset by the company's large size, broad geographic diversity, strong market positions, and sustained ability to generate healthy funds from operations, S&P said.

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