The ratings on leading France-based construction and engineered materials and solutions manufacturer and distributor Compagnie de Saint-Gobain reflect Standard&Poor's Ratings Services' view of the company's "strong" business risk profile and "significant" financial risk profile. Underpinning the ratings are the company's broad business mix, with activities in several industries, and broad diversification of earnings by geography and customers. Saint-Gobain's large size, solid market positions, and pricing power, supported by its technological leadership, are additional supports. Partly offsetting these strengths is Saint-Gobain's leveraged balance sheet, stemming from a previous debt-funded external-growth strategy. Our ratings are further constrained by the company's exposure to cyclical end markets, notably construction and automobiles, and to volatile energy and raw material input costs. We have
