Holcim Ltd. is the Switzerland-based cement manufacturer formerly known as Holderbank. The ratings on the company reflect its solid market position in the global cement industry, broad geographic diversification of its cost-efficient operations, good and stable profitability over the past five years, strong free cash flow generation, and moderate financial profile. These factors are somewhat tempered by an increasingly aggressive financial policy and moderately challenging industry fundamentals, including cyclicality and competition. With Swiss franc (SFr) 14 billion ($8.1 billion) sales in 2000, the company is the world's second largest cement manufacturer, behind France-based Lafarge S.A. (BBB+/Negative/A-2), but ahead of Germany-based Heidelberger Zement AG (BBB+/Negative/A-2). Holcim's above-average business profile also reflects the strength of its core cement operations (representing 95% of
