Bulletin: Holcim's Hybrid Redemption Won't Affect Equity Treatment Of The Remaining Hybrid Due To Improved Creditworthiness

MILAN (S&P Global Ratings) Oct. 12, 2023--S&P Global Ratings said today that following the redemption by building materials company Holcim (BBB+/Stable/A-2) of its outstanding Swiss franc (CHF) 200 million hybrid notes, it will treat the company's remaining €500 million hybrid instrument as having intermediate equity content. The €500 million hybrid instrument has its first reset date on April 5, 2024. We understand Holcim will fund the redemption of the CHF200 million hybrid notes with available liquidity sources. Although we typically take a negative view of hybrids that are redeemed but not replaced, we consider the company's creditworthiness has improved since it issued its first subordinated hybrid bond in 2018. We raised our issuer credit rating on Holcim to 'BBB+' from

...MILAN (S&P Global Ratings) Oct. 12, 2023--S&P Global Ratings said today that following the redemption by building materials company Holcim (###+/Stable/A-2) of its outstanding Swiss franc (CHF) 200 million hybrid notes, it will treat the company's remaining 500 million hybrid instrument as having intermediate equity content. The 500 million hybrid instrument has its first reset date on April 5, 2024. We understand Holcim will fund the redemption of the CHF200 million hybrid notes with available liquidity sources. Although we typically take a negative view of hybrids that are redeemed but not replaced, we consider the company's creditworthiness has improved since it issued its first subordinated hybrid bond in 2018. We raised our issuer credit rating on Holcim to '###+' from '###' in March 2022, reflecting the company's improved profitability and cash flow generation. We also value Holcim's consistent financial policy. As of year-end 2022, the company's S&P Global Ratings-adjusted funds...

Bulletin