Broad geographic diversity; Large size, and strong market positions in highly consolidated areas; and Good cash flow generation. Heavy debt leverage, and an aggressive financial policy; Exposure to the structurally difficult German market; and Industry cyclicality and antitrust issues. The ratings on HeidelbergCement AG, the fourth-largest cement producer worldwide, reflect the group's aggressive financial profile, tight financial flexibility, and lower level of profitability compared with most peers, as well as the cement industry's cyclicality and heavy capital intensiveness. This is offset by HeidelbergCement's large size, good geographic diversity, and strong market positions. The group generated €6.6 billion of sales in 2002. Unadjusted net financial debt was €4.3 billion at year-end 2002. HeidelbergCement's credit profile has been affected by recent developments,
