The ratings on HeidelbergCement AG remain on CreditWatch with negative implications, where they were placed on Oct. 24, 2008. Germany-based HeidelbergCement is one of the world largest manufacturers of heavy building materials. Our ratings on HeidelbergCement reflect our assessment of a vulnerable liquidity position and a highly leveraged financial profile, which we consider stem from the succession and combination of different factors: the huge Hanson acquisition deal completed in mid-2007; sharp drops in cyclical construction markets experienced since second-half 2008; the financial market turmoil; and serious liquidity issues at the controlling shareholder level. At this stage, these factors more than offset the group's satisfactory business profile, underpinned by solid markets shares, large size, broad diversity, and several favorable industry characteristics
