The ratings on HeidelbergCement AG, the fourth-largest cement producer worldwide, reflect the group's aggressive financial profile, tight financial flexibility, and lower level of profitability compared with most peers, as well as the cement industry's cyclicality and heavy capital intensiveness. This is offset by HeidelbergCement's large size, good geographic diversity, and strong market positions. The group generated €6.6 billion of sales in 2002. Unadjusted net financial debt was €4.3 billion at year-end 2002. HeidelbergCement's credit profile has been affected by recent developments, including: The group's aggressive financial policy and its tight financial flexibility; The effect of the German cement market's ongoing price war on the group's near-term cash generation; and A €250 million cartel fine recently imposed on the group by
