Broad geographic diversification Cost-efficient operations Good and stable profitability over the past five years Consistently strong free cash flow generation Cyclicality, seasonality, and high capital intensity of the cement industry Exposure to antitrust investigations and potential fines for alleged anticompetitive practices caused by the highly consolidated nature of some markets The ratings on Switzerland-based Holcim Ltd. are supported by its good and stable profitability, which translate into strong cash flow generation for the group. Holcim's leading business position as the world's second-largest cement producer and good geographic and product diversification are also positive rating factors. These strengths are offset by the group's strategy of growth through acquisitions, which results in an intermediate financial profile. This is illustrated by Holcim's debt-financed
