The ratings on France-based Compagnie de Saint-Gobain reflect its strong business profile, underpinned by a broad business mix and geographic diversity. Also supporting the ratings are the group's very large size and solid positions in--and strategic focus on--activities mainly subject only to local or regional competition, as well as exposure to more stable refurbishment end-markets and growing energy-saving applications. Mitigating these strengths are the group's aggressive capital spending strategy and moderate financial policy, exposure to energy and raw material input costs, and increasing reliance on cyclical housing markets. The group is also involved in asbestos-related litigation in the U.S. Saint-Gobain holds worldwide and European leadership positions in diversified industries, including glass for building and automotive, high-performance materials, construction products (gypsum
