On Oct. 6, 2005, Standard&Poor's Ratings Services affirmed its 'BB+' long-term corporate credit rating on Germany-based HeidelbergCement AG, following the completion of the cement producer's acquisition by Spohn Cement GmbH, a company related to the Merckle family. At the same time, the rating was removed from CreditWatch, where it had been placed with negative implications on June 13, 2005. The 'B' short-term rating was affirmed. The outlook is stable. The affirmation reflects Standard&Poor's expectation that HeidelbergCement's credit ratios will remain consistent with the 'BB+' rating, despite the mostly debt-financed acquisition. Although we also analyze the consolidated figures (including Spohn's debt) in our analysis, the acquisition had less of an impact on HeidelbergCement's financial profile than initially
