S&P: HeidelbergCement unaffected

Standard & Poor's said the announcement by HeidelbergCement AG (BB+/stable/B) of an extraordinary loss of up to €700 million after tax at the fiscal year ended Dec. 31 has no impact on the ratings or outlook on the company.

S&P said most of the charges reflect impairment of goodwill related to cement assets in Northern and Western Europe, as well as Indocement. Included in the charges are restructuring provisions for the group's Belgian-Dutch cement business and a revaluation of deferred tax assets.

Although the magnitude of the extraordinary charges is very material, S&P said the cash outflow is limited to about €50 million over several years and is expected to be partly compensated by cost reductions.

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