The ratings on Germany-based HeidelbergCement reflect the group's moderately aggressive financial structure and the cement industry's cyclicality and heavy capital intensity. These factors are offset by the group's large size, broad geographical diversity, strong market positions, and sustained ability to generate healthy funds from operations. With sales of €6.9 billion in 2004, HeidelbergCement is the world's fourth-largest cement producer after France-based Lafarge S.A. (BBB/Stable/A-2), Switzerland-based Holcim Ltd. (BBB+/Stable/A-2), and Mexico-based Cemex S.A. de C.V. (BBB-/Stable/--). HeidelbergCement's unadjusted net debt was €3.9 billion ($4.7 billion) at June 30, 2005. In the first six months of 2005, HeidelbergCement posted an 8% increase in sales to €3.5 billion compared with the same period in 2004, due to strong growth in North America and
