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. Holcim's EBITDA margins remained flat at 26% for the year to Dec. 31, 2002, mainly as a result of the group's broad geographic diversification between mature and emerging markets. Trading conditions in the group's mature markets such as Europe and North America were difficult, and operating profits were down by 6% and 4%, respectively. Latin America, with strong margins of 24%, was the largest contributor to the group's EBITDA at 35% in 2002 (36% in 2001). This
