Moody's lifts Lafarge view to stable

Moody's Investors Service said it changed the rating outlook for the Baa2 senior debt ratings of Lafarge SA, Lafarge North America Inc. and Blue Circle Industries plc to stable from negative.

The change in outlook was prompted by the sale of Lafarge's roofing division and Moody's expectation that a major part of the cash proceeds will be used to reduce increased debt that resulted from the buyout of the minority interests of Lafarge's North American subsidiary. Low profitability and cash flow generation of Lafarge's roofing division will lead to only limited reduction of the group's cash flows, the agency said.

Lafarge's Baa2 rating reflects the company's well-diversified geographical operations and its position as a leading player in several different sectors of the building materials industry, namely the consolidated cement and gypsum industry and a strong foothold in the production of aggregates and concrete in its major markets, Moody's said.

© 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.