Broad geographic diversification and cost-efficient operations; Good, stable profitability over the past five years; and Strong free cash flow generation. Acquisitive growth strategy over the past few years, which has resulted in a deterioration of financial ratios and increased integration risk; Technical risks of operating new facilities inherent in the group's ambitious expansion plans. For example, Holcim's results were affected at year-end 2001 and in the first half of 2002 by difficulties at its new cement plant in Portland, Colorado, U.S.; and Unfavorable Western European market conditions. In particular, German cement prices have been under pressure, and other markets such as France and Belgium are experiencing slower-than-expected growth. The ratings reflect Switzerland-based cement producer Holcim Ltd.'s strong business position as
