The ratings on Germany-based heavy materials group HeidelbergCement AG reflect Standard&Poor's Ratings Services' view of the group's business risk profile as "satisfactory" and financial risk profile as "aggressive." Our ratings are supported by HeidelbergCement's leading positions in the global building materials industry, where it is number one in aggregates and number three in cement and concrete volumes sold. The company's high degree of vertical integration and end-market diversity add some strength. We believe these positives are tempered by HeidelbergCement's reliance on currently somewhat weak developed countries, which account for about 60% of revenues, and present lower growth and margin potential compared with emerging economies. In addition, in spite of management's willingness to protect profitability and allocate discretionary cash
