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 the world's second-largest cement producer with good geographic and product diversification are also positive rating factors. These strengths are offset by the group's strategy of growth through acquisitions, which results in an intermediate 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 (CHF) 6.4 billion to Holcim's balance sheet. Further investments in India, China, the U.K., U.S., and Canada have also been debt financed. Holcim has helped offset the impact
