Broad geographical diversity; Large size, and strong market positions in highly consolidated areas; and Good cash flow generation. Exposure to the structurally difficult German market; Industry cyclicality and heavy capital intensity; and Moderately aggressive financial structure. The ratings on Germany-based HeidelbergCement reflect the group's moderately aggressive financial structure and the cement industry's cyclicality and heavy capital intensity. These factors are offset by the group's large size, broad geographical diversity, strong market positions, and sustained ability to generate healthy funds from operations. With sales of €6.9 billion in 2004, HeidelbergCement is the world's fourth-largest cement producer after France-based Lafarge S.A. (BBB/Stable/A-2), Switzerland-based Holcim Ltd. (BBB+/Stable/A-2), and Mexico-based Cemex S.A. de C.V. (BBB-/Stable/--). HeidelbergCement's unadjusted net debt was €3.9 billion ($4.7 billion)
