S&P cuts Lafarge outlook

Standard & Poor's said it revised its outlook on Lafarge SA to negative from stable. At the same time, the agency said it affirmed the BB+ long-term and B short-term corporate credit ratings on the group.

The agency said the outlook revision reflects its view that there is a risk that Lafarge may not be able to improve its credit metrics in 2012, from the very weak levels at the end of 2011.

S&P's-adjusted funds from operations to debt at year-end 2011 was just 12%, which falls short of the high-teens percentage that is considered commensurate with the BB+ rating, the agency said.

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