The ratings on Switzerland-based Holcim Ltd. reflect the group's strong business position as the second-largest cement producer in the world, good and stable profitability over the past five years, and strong cash flow generation, as well as the group's moderate financial profile. Holcim's operating EBITDA margin improved to 27% in the first nine months of 2003, from 26% in the same period in 2002--amid difficult trading conditions in the group's mature markets, particularly Germany, Switzerland, and North America--due to cost savings from productivity gains. The group's EBITDA in North America was down 24% after being heavily affected by harsh winter conditions and sharply unfavorable currency fluctuations. Latin America, with strong margins of nearly 40%, remained the largest contributor to the
