Research Update: Buzzi Unicem And Subsidiary Dyckerhoff Long-Term Ratings Lowered To 'BBB-' On Weak Credit Metrics; Outlook Stable
- ID: 1723916
- August 2010
- Standard & Poors
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.
Italy-based heavy materials manufacturer Buzzi Unicem SpA (Buzzi) has significant exposure to Eastern Europe and Italy, where volume and price declines have been steep and rapid. Ongoing tough conditions in building materials markets and pressure on prices in 2010 mean that Buzzi's credit metrics remain exposed to further potential declines from an already low level and tightening covenant headroom. We are lowering our long-term corporate credit rating on Buzzi and its German subsidiary Dyckerhoff AG to 'BBB-' from 'BBB', and affirming the 'A-3' short-term rating on both groups. The stable outlook on Buzzi and Dyckerhoff reflects our view that the group's credit metrics will likely rebound to the mid-20% region in 2011. We also assume that Buzzi will successfully address...
Companies mentioned in this report are: Buzzi Unicem SpA,Dyckerhoff AG,RC Lonestar INC.
Action: Outlook: Stable
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