Moody's lifts HeidelbergCement view to positive

Moody's Investors Service said it affirmed HeidelbergCement's long-term issuer rating at Baa3.

The agency also said it affirmed the group's backed senior unsecured at Baa3 and senior unsecured euro medium-term notes rating at provisional Baa3.

The outlook also was revised to positive from stable.

The outlook revision was mainly prompted by HeidelbergCement's revised net leverage commitment, Moody's said.

The issuer recently presented a strategic vision for the period 2018 to 2020 and has committed itself to reduce net debt by about €1.5 billion to €7 billion over the next three years, the agency said.

The company also committed to reducing net leverage to less than 2x from its current commitment to maintain net leverage of less than 2.5x, Moody's said.

The company's net leverage commitment of less than 2x equates approximately to an adjusted gross leverage of about 3.5x, a level commensurate with a Baa2 rating, the agency said.

Moody's also said it welcomes the group's capital allocation plans for the next three years, which balances well shareholders and creditors interests.

The ratings continue to reflect the group's robust business profile supported by its large scale, good geographical and product diversification, the agency added.

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