S&P lifts LarfargeHolcim view to stable

S&P said it revised the outlook on LafargeHolcim Ltd. to stable from negative and affirmed the BBB/A-2 long- and short-term issuer credit ratings on the company.

The agency also said it affirmed the ratings on all LafargeHolcim's outstanding senior unsecured bonds and hybrid securities.

S&P said it views LafargeHolcim's operating performance in 2018 as broadly stable with an adjusted EBITDA of CHF5.6 billion amid challenging market conditions, notably in the first half of the year.

The agency also considered management's prudent financial policy and commitment to de-leveraging, evident from its intention to use the proceeds from the sale of Holcim Indonesia for debt reduction.

The stable outlook also reflects a forecast that LafargeHolcim's adjusted funds from operations-to-debt will remain comfortably above 22% in the coming years, benefiting from supportive demand for heavy building materials, notably in Europe and North America, S&P said.

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