Moody Investors Service upgrades HeidelbergCement's rating

Moody’s Investors Service has upgraded HeidelbergCement’s long-term issuer rating to Baa2 from Baa3. Concurrently, the rating agency has upgraded the backed short term rating to (P)P-2 from (P)P-3. The rating outlook is stable, claims Heidelbergcement.

As rationale behind the rating upgrade, Moody’s particularly highlighted HeidelbergCement’s resilient performance throughout 2020, its strong cash flow generation as well as its conservative financial policy including its commitment to keep the leverage ratio (net debt to operating EBITDA) within the target corridor of 1.5x-2.0x.

Moody’s rating upgrade comes a week after the rating agency Standard & Poors upgraded HeidelbergCement’s credit to BBB from BBB-.