The ratings reflect France-based Compagnie de Saint-Gobain S.A.'s (Saint-Gobain) superior business profile, which is reflected in the group's geographically diversified mix of high-quality activities and significant success reducing exposure to more cyclical markets. The ratings also acknowledge the ongoing strengthening of Saint-Gobain's cash flow generation. These positive factors are partially offset by the group's increased recourse to debt markets to finance its aggressive external-growth strategy. With sales of €28.8 billion in 2000, Saint-Gobain holds European or world leadership in diversified industries such as glass, industrial ceramics and abrasives, insulation and fiber reinforcements, building materials, and building-materials distribution. The group also benefits from a strong earnings base, which is well diversified in terms of businesses, end markets, and geographic areas. Exposure
