...Removal of the RWN: The removal of the Rating Watch Negative on 6 December 2016 reflects Fitch Ratings' belief that the proposed Sika acquisition can be accommodated at the current ratings, following the EUR2.9bn sale of Verallia, and years of cost cuts and working-capital and capex control. The agency forecasts that FFO-adjusted net leverage will remain within guidance for the ratings, if the Sika acquisition is finalised. The affirmation reflects Saint- Gobain's strong business profile as one of the largest and most diversified building products companies globally. Stable Business Profile: Saint-Gobain's earnings and cash-flow generation have historically been more stable than its peers', thanks to the contribution from industrial, renovation and infrastructure markets (67% of sales) and its focus on higher value-added products. Renovation is more stable than new-build demand, and infrastructure activity can be counter-cyclical. In addition, industrial end-markets such as automotive,...
