Moody's keeps HeidelbergCement on review

Moody's Investors Service said HeidelbergCement's B1 ratings remain on review for downgrade following the support the company has received in the short-term rollover of a major maturity of its bank lines.

HeidelbergCement is well placed to be a key player in its industry with a good competitive position going forward, according to the agency.

"At the same time we note that the company is likely to carry a heavy debt burden for some time, absent of material disposals, leaving its management to navigate through potential challenging scenarios in a protracted economic downturn," Matthias Hellstern, a Moody's analyst, said in a statement.

The company's ability to attract sizable new equity also appears limited and therefore dependency on its banks to amend the covenant structure and extend the tenor of its major credit agreements remains key to relieving the current pressure, the agency said.

The continuation of the review reflects the uncertainty surrounding these bank negotiations, the agency noted.

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