Creditreform has confirmed HeidelbergCement AG's unsolicited corporate issuer rating of BBB. The outlook remains stable. The key factors for the stable rating are the strong market position in the cement industry, the geographical diversification, the implemented cost-cutting and liquidity-preserving measures as well as the solid earnings and internal financing strength that has been confirmed in the current 2020 financial year, which has been strongly negatively affected by the COVID 19 pandemic. The mainly pandemic-related impairment of goodwill and other assets will lead to a significantly negative earnings statement and, despite a considerable reduction in (net) financial debt, to a deterioration of key financial ratios for the full year 2020. Excluding the impairment, we consider the financial and earnings position to be noticeably improved due to the implemented cost reductions and strong cash generation, implying a stable rating assessment despite the market environment characterized by uncertainties and volatilities due to the pandemic.
Creditreform Rating has carried out an unsolicited corporate rating of HeidelbergCement AG.