Moodys.com
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's places all ratings of LafargeHolcim on review for downgrade

21 Nov 2016

Frankfurt am Main, November 21, 2016 -- Moody's Investors Service has placed all the ratings of Swiss-based building materials manufacturer LafargeHolcim Ltd and its subsidiaries on review for downgrade.

"Our decision to review LafargeHolcim's ratings for downgrade follows the announcement made by the group to increase its dividend pay-out and to implement share buybacks at a time when we view its credit metrics as already weak for its current rating. Furthermore, we need to evaluate the underlying assumptions underpinning the company's expectations of an operating EBITDA of CHF7 billion to be achieved by year-end 2018 " says Stanislas Duquesnoy, a Moody's Vice President - Senior Credit Officer.

A full list of affected ratings can be found at the end of this Press Release.

RATINGS RATIONALE

Today's rating action was prompted by LafargeHolcim's announcement last Friday that it has updated its operating EBITDA guidance for 2018 to CHF7 billion from previously CHF8 billion (due to a CHF-700 million scope, CHF-500 million FX impact and CHF200 million additional cost savings) and intends to propose a dividend increase to CHF2 per share to be paid out in 2017 from CHF1.5 per share paid in 2016 (more than CHF250 million increase compared to 2016). In addition, the group's decision to distribute CHF1 billion to shareholders through share buybacks over two years will also negatively impact the deleveraging path of LafargeHolcim.

The announcement comes at a time when credit metrics of LafargeHolcim have improved from 2015 pro forma, but are still weak for the current Baa2 rating category. While the company has delivered on its CHF3.5 billion divestment program and made progress in raising operating profitability and cash flow generation through the realisation of synergies and cost savings following the merger of Lafarge and Holcim, improvements in credit metrics are coming through more slowly than expected by Moody's. As a result, it is unlikely that the company will achieve Moody's ratio guidance of debt/EBITDA sustainably below 3.5x and retained cash flow/net debt sustainably above 20% by year-end 2016 and the company's ability to restore metrics consistent with those levels by year-end 2017 still needs to be assessed (especially retained cash flow / net debt due to the material increase in dividend payout ratio).

The review process will mainly focus on the short to medium-term business prospects on a region-by-region basis with a view to assessing LafargeHolcim's ability to swiftly restore credit metrics in line with Moody's guidance for the Baa2 rating. This is particularly important in the context of the group's updated public guidance for 2017-18 with regards to improvements in underlying business activity. The review process will also assess the implications of LafargeHolcim's announcements at last Friday's capital markets day for the group's credit profile.

Moody's would expect that a downgrade, if any, would be limited to one notch.

WHAT COULD CHANGE THE RATING UP / DOWN

Given the review for downgrade just initiated, an upgrade of LafargeHolcim's Baa2 rating within the next 12-18 months is unlikely. Longer term, the rating could be upgraded in the event of an improvement in operating performance and profitability, driven by volume growth and price increases as well as the realization of cost synergies leading to an RCF/net debt reaching at least 25% and a reduction of the debt/EBITDA ratio to below 3.0x on a sustainable basis.

In April 2016, Moody's stated that it would consider downgrading LafargeHolcim if (1) the integration and achievement of synergies would prove difficult or fall materially behind expectations; or (2) such events, as well as weaker-than-expected performance, would result in the inability of the company to achieve RCF/net debt of at least around 20% in 2016 and beyond and maintain a leverage of below 3.5x.

LIST OF AFFECTED RATINGS

On Review for Downgrade:

..Issuer: Holcim Capital Corporation Ltd.

....Backed Commercial Paper, Placed on Review for Downgrade, currently P-2

....Backed Senior Unsecured Regular Bond/Debenture , Placed on Review for Downgrade, currently Baa2

..Issuer: Holcim Finance (Australia) Pty Ltd

....Backed Other Short Term, Placed on Review for Downgrade, currently (P)P-2

....Backed Senior Unsecured MTN Program, Placed on Review for Downgrade, currently (P)Baa2

....Backed Senior Unsecured Regular Bond/Debenture, Placed on Review for Downgrade, currently Baa2

..Issuer: Holcim Finance (Belgium) S.A.

....Backed Commercial Paper, Placed on Review for Downgrade, currently P-2

..Issuer: Holcim Finance (Luxembourg) S.A.

....Backed Other Short Term, Placed on Review for Downgrade, currently (P)P-2

....Backed Senior Unsecured MTN Program, Placed on Review for Downgrade, currently (P)Baa2

....Backed Senior Unsecured Regular Bond/Debenture, Placed on Review for Downgrade, currently Baa2

..Issuer: Holcim GB Finance Ltd.

....Backed Senior Unsecured Regular Bond/Debenture, Placed on Review for Downgrade, currently Baa2

..Issuer: Holcim Overseas Finance Ltd.

....Backed Senior Unsecured Regular Bond/Debenture, Placed on Review for Downgrade, currently Baa2

..Issuer: Holcim US Finance S.a r.l. & Cie S.C.S.

....Backed Commercial Paper, Placed on Review for Downgrade, currently P-2

....Backed Other Short Term, Placed on Review for Downgrade, currently (P)P-2

....Backed Senior Unsecured MTN Program, Placed on Review for Downgrade, currently (P)Baa2

....Backed Senior Unsecured Regular Bond/Debenture, Placed on Review for Downgrade, currently Baa2

..Issuer: Lafarge SA

....Senior Unsecured Bank Credit Facility, Placed on Review for Downgrade, currently Baa2

....Senior Unsecured Regular Bond/Debenture, Placed on Review for Downgrade, currently Baa2

..Issuer: LafargeHolcim Albion Finance Ltd

....Backed Other Short Term, Placed on Review for Downgrade, currently (P)P-2

....Backed Senior Unsecured MTN Program, Placed on Review for Downgrade, currently (P)Baa2

..Issuer: LafargeHolcim Continental Finance Ltd

....Backed Other Short Term, Placed on Review for Downgrade, currently (P)P-2

....Backed Senior Unsecured MTN Program, Placed on Review for Downgrade, currently (P)Baa2

..Issuer: LafargeHolcim Finance US LLC

....Backed Senior Unsecured Regular Bond/Debenture, Placed on Review for Downgrade, currently Baa2

..Issuer: LafargeHolcim International Finance Ltd

....Backed Other Short Term, Placed on Review for Downgrade, currently (P)P-2

....Backed Senior Unsecured MTN Program, Placed on Review for Downgrade, currently (P)Baa2

..Issuer: LafargeHolcim Ltd

....Issuer ST Rating, Placed on Review for Downgrade, currently P-2

....LT Issuer Rating, Placed on Review for Downgrade, currently Baa2

....Other Short Term, Placed on Review for Downgrade, currently (P)P-2

....Senior Unsecured MTN Program, Placed on Review for Downgrade, currently (P)Baa2

....Senior Unsecured Regular Bond/Debenture, Placed on Review for Downgrade, currently Baa2

..Issuer: LafargeHolcim Sterling Finance (Netherlands)

....Backed Other Short Term, Placed on Review for Downgrade, currently (P)P-2

....Backed Senior Unsecured MTN Program, Placed on Review for Downgrade, currently (P)Baa2

Outlook Actions:

..Issuer: Holcim Capital Corporation Ltd.

....Outlook, Changed To Rating Under Review From Negative

..Issuer: Holcim Finance (Australia) Pty Ltd

....Outlook, Changed To Rating Under Review From Negative

..Issuer: Holcim Finance (Luxembourg) S.A.

....Outlook, Changed To Rating Under Review From Negative

..Issuer: Holcim GB Finance Ltd.

....Outlook, Changed To Rating Under Review From Negative

..Issuer: Holcim Overseas Finance Ltd.

....Outlook, Changed To Rating Under Review From Negative

..Issuer: Holcim US Finance S.a r.l. & Cie S.C.S.

....Outlook, Changed To Rating Under Review From Negative

..Issuer: Lafarge SA

....Outlook, Changed To Rating Under Review From Negative

..Issuer: LafargeHolcim Finance US LLC

....Outlook, Changed To Rating Under Review From Negative

..Issuer: LafargeHolcim Ltd

....Outlook, Changed To Rating Under Review From Negative

The principal methodology used in these ratings was Building Materials Industry published in September 2014. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Stanislas Duquesnoy
VP - Senior Credit Officer
Corporate Finance Group
Moody's Deutschland GmbH
An der Welle 5
Frankfurt am Main 60322
Germany
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Anke Rindermann
Associate Managing Director
Corporate Finance Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Releasing Office:
Moody's Deutschland GmbH
An der Welle 5
Frankfurt am Main 60322
Germany
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​​​
Moodys.com