S&P cuts Holcim

Standard & Poor's said it lowered the long-term corporate credit and debt ratings on Holcim Ltd. to BBB from BBB+ and affirmed its A-2 short-term corporate credit rating.

The outlook is stable.

"The action reflects our belief that Holcim's fully adjusted credit measures have considerably weakened in 2008 and aren't likely to recover significantly before 2010-2011," S&P analyst Xavier Buffon said in a statement.

"This sharp deterioration stems from the combination of ongoing aggressive spending on expansion projects until this year and significant pressures on margins and cash flows in a very tough market environment," Buffon said.

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