Ongoing sharp volume declines are pressuring margins and credit metrics at France-based building materials manufacturer Saint-Gobain. We do not foresee a sufficient recovery of Saint-Gobain's credit metrics in 2010, which would have been necessary to maintain a 'BBB+' rating. We are lowering our long-term ratings on Saint-Gobain to 'BBB' from 'BBB+'. The stable outlook reflects our belief that Saint-Gobain's financial metrics will remain adequate for the 'BBB' rating. On July 24, 2009, Standard&Poor's Ratings Services lowered its long-term corporate credit and debt ratings on France-based construction and engineered materials manufacturer and distributor Compagnie de Saint-Gobain (Saint-Gobain) to 'BBB' from 'BBB+'. At the same time, the 'A-2' short-term corporate credit rating on Saint-Gobain was affirmed. The outlook is stable.
