The ratings on Switzerland-based building materials group Holcim Ltd. and related entities U.S.-based Holcim (U.S.) Inc. (BBB/Stable/--) and Canada-based Holcim (Canada) Inc. (BBB/Stable/--) reflect Standard&Poor's Ratings Services' view of the group's strong business risk profile--which we believe will underpin consistently robust cash generation in the future--and its significant financial risk profile. Supporting the ratings, in our opinion, are Holcim's large-scale, strong market positions worldwide, high level of vertical integration, and considerable geographic diversity. Constraining the ratings are the group's significant financial risk profile and aggressive capital spending on expansion projects, as well as exposure to pronounced construction end-market cyclicality and seasonality, commoditized products, and heavy capital and energy intensity. The group's 2011 results were adversely affected by unfavorable
