Creditreform Rating has confirmed the unsolicited corporate issuer rating of Holcim Ltd at BBB+ in the context of an annual update. The outlook remains stable. In addition to the company's leading global market position in the cement and building materials industry and its geographical diversification, the main reason for confirming the rating result was the resilient operating and financial performance in 2020 despite the negative effect of the COVID-19 pandemic and the subsequent strong business development in 2021 year-to-date, a trend that will likely continue given the overall positive fundamentals for the industry. The acquisition of Firestone Building Products Company, LLC had a dampening effect, leading to a noticeable increase in net financial debt in the current fiscal year. We expect the company to confirm or even improve its solid quantitative and qualitative fundamentals despite remaining pandemic-related uncertainties, tightening climate change targets and current cost inflation in energy and commodity markets.
Creditreform Rating has confirmed the unsolicited corporate issuer rating of LafargeHolcim Ltd. at BBB+ in the context of an annual update. The outlook remains stable. Main reasons for the rating result continue to be the Company´s worldwide leading market position in the cement and building materials industry, its geographical diversification, positive (organic) business development in 2019 resulting in an improvement in the outcome of the financial key figures analysis, as well as its sufficient earnings and internal financing power. In the current 2020 financial year, LafargeHolcim reports a significant decline in sales and earnings against the background of the social and macroeconomic upheavals in the wake of the COVID-19 pandemic. Despite operational improvements in the third quarter of 2020, setbacks and negative effects on assets, finances and earnings cannot be ruled out against the background of the COVID-19 pandemic, which continues to develop dynamically. This is currently offset by the company's solid quantitative and qualitative fundamentals showing sufficient financial stability, at least in the short term, which is why the rating and outlook could be confirmed.
Creditreform Rating has carried out an unsolicited rating of Lafarge Holcim Ltd. The rating has been set to BBB+ with stable outlook.