Rationale The ratings on France-based Compagnie de Saint-Gobain S.A. reflect its strong business profile, underpinned by a broad business mix and geographic diversity, along with the group's large size and solid positions in--and strategic focus on--activities mainly subject to local or regional competition. These strengths are mitigated by the group's acquisitive strategy, intermediate financial risk profile, exposure to cyclical end-markets, some energy- and raw material-intensive activities, and recurrent price pressures in the commoditized flat-glass industry. The group is also involved in asbestos-related litigation in the U.S. With 2005 sales of €35 billion, Saint-Gobain holds worldwide and European leadership positions in diversified industries (glass; industrial ceramics, plastics, abrasives and reinforcement fibers; building materials, insulation and pipes; and building-materials distribution). Through its
