The ratings on France-based Compagnie de Saint-Gobain S.A. (Saint-Gobain) reflect its very strong business profile, stemming from solid competitive positions, and extensive diversity in terms of product, geography, and markets. This is tempered, however, by the group's moderate financial profile, acquisitive strategy, and exposure to asbestos-related litigation in the U.S. With sales of €29.6 billion in 2003, Saint-Gobain holds worldwide or European leadership positions in diversified industries (glass, industrial ceramics, plastics and abrasives, insulation and fiber reinforcements, building materials, and building-materials distribution). Gross unadjusted financial debt was €8.7 billion at year-end 2003. Despite the exposure of the housing materials division to any U.S. residential construction slowdown, Saint-Gobain is likely to benefit in the medium term from the improving global economy,
