Moody's cuts Lafarge view to negative

Moody's Investors Service said it has changed the outlook for the Baa2 senior debt ratings of Lafarge SA and Blue Circle Industries plc to negative from developing.

Lafarge's Baa2 rating reflects the company's well-diversified geographical operations, with a presence in more than 70 countries, 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, the agency said.

However, the negative outlook encapsulates the execution risks associated with timely deleveraging to bring the key debt ratio of CFO-dividends/net adjusted debt back into the high teens/low twenties during 2007, which is more in line with a solid Baa2, the agency said.

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