HeidelbergCement : S&P ugrades rating of HeidelbergCement to BBB with stable outlook

Today, S&P Global Ratings raised HeidelbergCement's long- and short-term issuer credit ratings to BBB/A-2 from BBB-/A-3 and the issue ratings on its debt to BBB from BBB-. The outlook is stable.

As rationale behind the rating upgrade, S&P highlighted HeidelbergCement's ability to significantly reduce its debt in 2020, despite the COVID-19 pandemic, thanks to extensive cost saving measures, resilient operating performance and strong cash flow. As a result, HeidelbergCement's leverage ratio (net debt to operating EBITDA) improved from 2.35x in 2019 to 1.86x, which is well within the company's target corridor of 1.5x-2.0x.

'Achieving a solid investment grade rating was a major goal in our Beyond 2020 strategy,' says Dr. Dominik von Achten, CEO of HeidelbergCement. 'My special thanks go to all our country management teams who acted very swiftly in challenging times and did an excellent job in delivering such strong results.'

'We have built a track record of consistent deleveraging,' says Dr. Lorenz Näger, CFO of HeidelbergCement. 'This rating upgrade by S&P marks a major financial milestone for us as we have now delivered on both commitments that we made: we have reduced our leverage ratio to below 2.0x and reached a BBB flat rating.'

About HeidelbergCement

HeidelbergCement is one of the world's largest integrated manufacturers of building materials and solutions, with leading market positions in aggregates, cement, and ready-mixed concrete. Around 53,000 employees at more than 3,000 locations in over 50 countries deliver long-term financial performance through operational excellence and openness for change. At the center of actions lies the responsibility for the environment. As forerunner on the path to carbon neutrality, HeidelbergCement crafts material solutions for the future.