...Sika Remains Uncertain: The Rating Watch Negative (RWN) reflects the transaction risk in the acquisition of a 16% economic interest and 52% of the voting rights in Sika. Completion of the acquisition would result in higher leverage than Fitch Ratings considers commensurate with the current ratings. The delay in the CHF2.75bn (EUR2.3bn) acquisition is neutral to positive for the ratings. Credit metrics have benefited from another year of positive cash flow, and the completion of the Verallia sale has removed uncertainty over the funding of Sika. Strong Business Profile: The ratings reflect Compagnie de Saint-Gobain's position as a global leader in the manufacturing and distribution of higher value-added building products. The group is one of the most diverse by product and geography in Fitch's rated universe of building products and materials companies with exposure to many end-markets including the car industry. This has benefited margin consistency in recent years, although we expect higher...
