The ratings on Switzerland-based Holcim Ltd. are supported by its good and stable profitability, which translate into strong cash flow generation for the group. Holcim's leading business position as one of the world's largest cement producer, with good geographic and product diversification, is also a positive rating factor. These strengths are offset by the group's strategy of growth through acquisitions, which results in a moderate financial profile. This is illustrated by Holcim's wholly debt-financed acquisitions of U.K.-based Aggregate Industries (AI) and an investment in India in 2005, which added additional net debt of Swiss franc (SFr) 6.4 billion to Holcim's balance sheet. Further investments in India and more recently in China have also been debt financed. Holcim, however, has helped
