(The following statement was released by the rating agency)
Nov 13 -
Summary analysis -- Italcementi SpA ------------------------------- 13-Nov-2012
CREDIT RATING: BB+/Stable/B Country: Italy
Primary SIC: Concrete
Credit Rating History:
Local currency Foreign currency
28-May-2012 BB+/B BB+/B
17-Sep-2009 BBB-/A-3 BBB-/A-3
11-Feb-2009 BBB/A-3 BBB/A-3
16-May-2008 BBB/A-2 BBB/A-2
The ratings on Italy-based and fifth-largest global cement manufacturer Italcementi SpA reflect Standard & Poor’s Ratings Services’ view of its “satisfactory” business risk profile, underpinned by its solid market position, large scale, broad geographic diversity, and healthy cash flow generation. These business strengths are somewhat offset by Italcementi’s exposure to cyclical end markets, limited access to cash flows from its partially owned (but fully consolidated) subsidiaries, and a weak margin contribution from Italcementi’s domestic market, Italy. The ratings also reflect our view of the group’s “significant” financial risk profile, as defined by our criteria.
Although the credit metrics of 83%-owned French subsidiary Ciments Francais S.A. continue to be stronger than Italcementi‘s, the ratings on the consolidated subsidiary are capped by those of its parent.