Fitch affirms Lafarge

Fitch Ratings said it affirmed Lafarge SA's BBB issuer default rating and F2 short-term rating following the company's announcement of the disposal of its majority shareholding in its roofing activity to PAI partners.

The outlook is stable.

Fitch expects the proceeds to be allocated in a balanced manner to debt reduction and to further investments to support activity growth.

The agency said it does not expect any material change in Lafarge's financial strategy following the roofing disposal and that Lafarge intends to maintain a 35% stake and remains committed to the development of the business. Fitch also expects that Lafarge will be able to return to its pre-acquisition net-debt-to-EBITDA ratio of 2.2x by the end of 2007 thanks to a combination of sustained healthy operating cash flows, divestments and contained capital expenditures, if needed.

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