The ratings on Germany-based cement producer HeidelbergCement AG (HC) are supported by its good profitability, strong market positions as a leading global player in heavy construction materials, and extensive geographic diversity, which translate into strong cash flow generation. These strengths are offset by the group's aggressive financial profile after the mostly debt-financed Hanson acquisition. With sales of about €11 billion in 2007, HC is one of the largest fully integrated global heavy building materials companies alongside Holcim Ltd. (BBB+/Stable/A-2), Lafarge S.A. (BBB/Stable/A-2), and Cemex Inc. (BBB/Negative/--) after Cemex's acquisition of Rinker Group Ltd. (BBB/Negative/A-2). The acquisition of Hanson PLC, has significantly improved HC's market position, mainly in aggregates, and its vertical integration. Since its acquisition of U.K.-based building materials group
