Fitch drops HeidelbergCement to junk

Fitch Ratings said it downgraded HeidelbergCement AG's long-term issuer default and senior unsecured ratings to BB+ from BBB-. The short-term issuer default rating was downgraded to B from F3.

The outlook on the long-term rating remains negative.

Fitch downgraded subsidiary Hanson plc's senior unsecured rating to BB+ from BBB-.

The downgrade reflects tight credit markets, difficult trading conditions in the U.S. construction market and a slowdown or decline in some European markets, which will undermine credit metrics over the next two years, according to the agency.

Ratings reflect strong operating profile and leading market positions in cement and aggregates, as well as geographical diversification, the agency noted.

The downgrade reflects forecasts showing net leverage rising above 3x by fiscal year-end 2008, Fitch said.

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