The ratings on Switzerland-based cement producer Holcim Ltd. reflect the group's strong business position as the second-largest cement producer in the world, good stable profitability over the past five years, and strong cash flow generation, as well as the group's moderate financial profile. With sales of Swiss franc (SFr) 6.4 billion ($4.4 billion) in the first half of 2002, Holcim recorded EBITDA of SFr1.7 billion, and EBITDA margins were stable at 27% year-on-year. Funds from operations (FFO) decreased only slightly to SFr1.2 billion from SFr1.3 billion, despite the difficult conditions in many of the group's markets. This result was positively affected by the group's recent acquisitions in Eastern Europe and Asia, as well as by its profitable Latin American operations
