Fitch drops LaFarge to BBB-

Fitch Ratings said it downgraded Lafarge SA's long-term issuer default rating and senior unsecured ratings to BBB- from BBB and affirmed its short-term issuer default rating at F3.

The outlook is negative.

The downgrade reflects an expectation that increasingly weak trading conditions in mature cement markets, coupled with a deceleration in demand from emerging markets, will result in lower cash flow generation in the next 24 months than previously forecast, Fitch said.

This will impact Lafarge's pace of de-leveraging and result in credit metrics that are not commensurate with a BBB rating, the agency said.

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