Broad geographical diversification, especially within Latin America where the group makes 40% of its profits; Cost-efficient operations; Good, stable profitability over the past five years; and Consistently strong free cash flow generation. Cyclicality, seasonality, and high capital intensity of the building materials industry; High leverage that arises from the group's acquisitive growth strategy in a consolidating market; High exposure to anti-trust investigations and potential fines from alleged anticompetitive practice due to the highly consolidated nature of some markets. The ratings on Switzerland-based Holcim Ltd. reflect the group's strong business position as the second-largest cement producer in the world, good and stable profitability over the past five years, and strong cash flow generation, as well as the group's moderate financial profile.
