S&P: Italcementi to negative

Standard & Poor's said it revised the outlook to negative from stable on Italcementi Spa and its 83%-owned subsidiary Ciments Francais SA.

The agency also said it affirmed its BB+ long-term and B short-term corporate credit ratings.

The outlook revision reflects a risk that the group may not be able to improve its credit metrics in 2013 from the weak levels at the end of 2012, S&P said.

The group's operating performance will continue to be hampered by prevailing weak demand in its key Western European markets, where volumes remain sluggish, the agency said.

This could lead the headroom under the group's leverage covenants to tighten at the end of the first half of 2013, when the seasonally high working capital outflow occurs, S&P said.

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