The ratings reflect France-based Compagnie de Saint-Gobain S.A.'s superior business profile, as well as management's commitment and expected ability to steadily bolster the company's financial profile. Saint-Gobain's above-average business profile reflects very strong competitive positions and extensive diversity in terms of product, geography, and markets. These strengths are tempered, however, by the group's moderate, albeit improving, financial profile, including significant liabilities from unfunded post-retirement obligations (€2.4 billion in 2003); acquisitive strategy; and exposure to asbestos-related litigation in the U.S. Net unadjusted financial debt was €5.7 billion at year-end 2003. With sales of €29.6 billion in 2003, Saint-Gobain holds European or worldwide leadership positions in diversified industries such as glass, industrial ceramics, plastics and abrasives, insulation and fiber reinforcements, building materials,
