S&P may cut HeidelbergCement

Standard & Poor's said it placed all its ratings on HeidelbergCement AG and related entities, including its BB+ long-term corporate credit rating and BB+ senior unsecured bank loan rating, on CreditWatch with negative implications. The B short-term rating was affirmed.

The move follows the announcement by Spohn Cement GmbH that it will submit a takeover bid to HeidelbergCement's shareholders.

S&P said the CreditWatch placement reflects S&P's concerns that the combined group's financial profile might not be adequate for the BB+ rating following a successful acquisition by unrated Spohn, a company belonging to the Merckle family. In particular, there are uncertainties regarding Spohn's financial structure, creditworthiness, and linkage to the whole Merckle group.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.