Moody’s gives LafargeHolcim notes Ba1

Moody's Investors Service said it assigned a Ba1 long-term rating to Holcim Finance (Luxembourg) SA's proposed issuance of perpetual deeply subordinated guaranteed notes of benchmark size.

The notes will be fully and unconditionally guaranteed by LafargeHolcim Ltd., the parent company of the LafargeHolcim group on a subordinated basis.

The outlooks are negative.

"The Ba1 rating we have assigned to the hybrid debt is two notches below LafargeHolcim's senior unsecured rating of Baa2, primarily because the instrument is deeply subordinated to other debt in the company's capital structure," Stanislas Duquesnoy, Moody's senior credit officer and lead analyst for LafargeHolcim, said in a news release.

LafargeHolcim plans to use the net proceeds for general corporate purposes, which could include the strengthening of its financial ratios through the refinancing of senior debt.

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