Large size and strong market positions in highly consolidated areas Good cash flow generation Extensive product, end-market, and geographic diversity Cyclicality, seasonality, and high capital intensity of the cement industry Aggressive financial profile after Hanson acquisition The ratings on Germany-based cement producer HeidelbergCement AG (HC) are supported by its good profitability, strong market positions as a leading global player in heavy construction materials, and extensive geographic diversity, which translate into strong cash flow generation. These strengths are offset by the group's aggressive financial profile after the mostly debt-financed Hanson acquisition. With sales of about €11 billion in 2007, HC is one of the largest fully integrated global heavy building materials companies alongside Holcim Ltd. (BBB+/Stable/A-2), Lafarge S.A. (BBB/Stable/A-2), and Cemex
