Large size and strong market positions Local and often highly consolidated markets Broad end-market and geographic diversity Vulnerable liquidity given heavy debt maturities and risk of covenant breach Aggressive financial policy Heavy debt and liquidity issues at controlling shareholder level Cyclicality, seasonality, and high capital and energy intensity The ratings on HeidelbergCement AG remain on CreditWatch with negative implications, where they were placed on Oct. 24, 2008. Germany-based HeidelbergCement is one of the world largest manufacturers of heavy building materials. Our ratings on HeidelbergCement reflect our assessment of a vulnerable liquidity position and a highly leveraged financial profile, which we consider stem from the succession and combination of different factors: the huge Hanson acquisition deal completed in mid-2007; sharp drops
