Moody’s: HeidelbergCement view to positive

Moody's Investors Service said it affirmed the provisional Ba1/provisional NP senior unsecured medium-term note program ratings and the Ba1 ratings on the senior unsecured notes of HeidelbergCement AG and its subsidiaries.

Concurrently, the agency affirmed the company’s Ba1 corporate family rating and Ba1-PD probability of default rating and changed the outlook to positive from stable.

"The outlook change to positive was driven by HeidelbergCement's strong operating performance in 2015 and a continued positive trend in Q1 2016," Falk Frey, Moody’s senior vice president and lead analyst for HeidelbergCement, said in a news release.

"A successful acquisition of Italcementi will result in a very strong business profile and the opportunity to achieve meaningful cost synergies from the combined business should lead to a rapid restoring of temporarily weaker credit metrics, which by 2017 would become commensurate with a Baa3 rating."

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