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. Mitigating these strengths are the group's acquisitive strategy and intermediate financial risk profile, exposure to cyclical end-markets, and to energy and raw material input costs. The group is also involved in asbestos-related litigation in the U.S. At €42 billion in 2006, sales were up 6.7% like for like versus 2005 and 18.5% including scope effects with full-year consolidation of BPB PLC acquired in late 2005. Saint-Gobain holds worldwide and European leadership positions in diversified industries: glass; high performance
