On Sept. 30, 2008, Standard&Poor's Ratings Services revised its outlook on Germany-based cement producer HeidelbergCement AG (HC) to negative from stable. At the same time, the 'BBB-/A-3' long- and short-term corporate credit and all issue ratings were affirmed. The outlook revision reflects fresh concerns about covenant headroom; heavy refinancing needs, which will need to be addressed by mid-2010; our reassessment of the group's future prospects in light of its half-year results published in August; and increasingly negative news from a number of key mature markets in Europe, including the U.K., which compound ongoing severe conditions in the U.S. We consequently believe that HC's performance will fall short of our previous expectations; that the group's debt reduction and restoration
