The ratings on leading France-based construction and engineered materials manufacturer and distributor Compagnie de Saint-Gobain reflect our view of its "strong" business profile, underpinned by a broad business mix, geographic diversity, large size, and solid market positions. Partly offsetting these strengths is Saint-Gobain's "significant" financial risk profile; and its exposure to cyclical end markets and to energy and raw material input costs. Sales for the first quarter of 2010 were somewhat more resilient than we had anticipated: reported sales declined by 0.5% (2.4% on a like-for-like basis). Although the comparison benefitted from a weak base in the first quarter of 2009, when sales were down 14.8%, volumes declined a further 1.7%. Increasing pressure on prices was reflected in a moderate
