Large size, vertical integration, and strong market positions. Local and often highly consolidated markets. Broad end-market and geographic diversity. Still-heavy debt burden and expansionary financial policy. Cyclicality, seasonality, and high capital and energy intensity. Sizable exposure to markets that remain depressed. The ratings on Germany-based heavy materials group HeidelbergCement AG reflect Standard&Poor's Ratings Service's assessment of the group's business risk profile as "satisfactory" and financial risk profile as "aggressive." In our view, HeidelbergCement will continue to deleverage and improve its credit metrics, given management's willingness to protect profitability and allocate discretionary cash flow to debt reduction. Nevertheless, we believe that this deleveraging will occur at only a gradual pace from a low credit-measure base today. This is mainly
