LONDON (Standard&Poor's) Feb. 20, 2009--Standard&Poor's Ratings Services said today that its ratings and outlook on French building materials manufacturer Compagnie de Saint-Gobain (BBB+/Negative/A-2) remain unchanged following the group's announcement of a €1.5 billion rights issue and other actions. We understand that the rights issue has already been authorized by Saint-Gobain's general assembly in 2007 and is fully underwritten by three banks. We also note that the group is aiming for cost savings of €600 million in 2009, after achieving €400 million in 2008. Discretionary cash flow generation should be cushioned by a proposed dividend reduction to €1.00 per share, payable in cash or shares, from €2.05 per share (€767 million), and a continuing focus on working
