S&P revises LafargeHolcim view to positive

S&P said it revised LafargeHolcim Ltd.’s outlook to positive from stable and affirmed its BBB issuer rating.

“Switzerland-headquartered building materials manufacturer LafargeHolcim Ltd. has accumulated healthy rating headroom thanks to resilient operating performance in 2020, despite the global recession resulting from the Covid-19 pandemic,” S&P said in a press release.

The agency said it forecasts the company will post S&P Global Ratings-adjusted funds from operations (FFO) to debt of 32%-33% in 2021 and about 35% in 2022. This estimate compares with the 30% in 2021 and more than 33% in 2022 that S&P said it previously forecasted in January 2021, when the company announced its acquisition of Firestone Building Products.

S&P noted may raise LafargeHolcim’s ratings in the next 12-18 months if its adjusted FFO to debt ratio remains comfortably above 30%.

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