Moody’s Investors Service has upgraded HeidelbergCement’s long term issuer rating to Baa2 from Baa3, its backed senior unsecured rating to Baa2 from Baa3 and the senior unsecured EMTN rating to (P)Baa2 from (P)Baa3. Concurrently, the rating agency has upgraded the backed other short-term rating to (P)P-2 from (P)P-3. The rating outlook is stable.
As rationale behind the rating upgrade, Moody’s particularly highlighted HeidelbergCement’s resilient performance throughout 2020, its strong cash flow generation as well as its conservative financial policy including its commitment to keep the leverage ratio (net debt to operating EBITDA) within the target corridor of 1.5x-2.0x.
Moody’s rating upgrade comes a week after the rating agency Standard & Poors upgraded HeidelbergCement’s credit to BBB from BBB-. Both upgrades underline the confidence of the two leading rating agencies in HeidelbergCement’s significantly increased financial strength. With the two current ratings in the solid investment grade range, HeidelbergCement has achieved an important goal ahead of schedule as part of its "Beyond 2020" strategy.
Read the article online at: https://www.worldcement.com/europe-cis/22042021/moodys-raises-heidelbergcement-rating-to-baa2/