Fixed Income Investors

Rating

HeidelbergCement’s credit quality is evaluated by the internationally recognized rating agencies Moody’s Investors Service, Standard & Poor's and Fitch Ratings.

Ratings as at 21 November 2016

Rating agencyLong-term ratingOutlookShort-term rating
Moody‘sBaa3stableP-3
S & PBBB-stableA-3
FitchBBB-stableF3
 

HeidelbergCement has set the ambitious target to reduce the dynamic gearing ratio in a timely manner again to below 2.5x (31 December 2015: 2.0x) after the acquisition of Italcementi.

 

The consistent and successful reduction of net debt over recent years is reflected by the positive development of our credit ratings between 2009 and 2015.

Development of Ratings 2009-2015

 
Development of ratings 2009–2015

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Commercial Paper Programme

Multi-Currency Commercial Paper Programme

A Commercial Paper (CP) is a short-term note. The banks place the tranches of the programme to institutional and private investors. There is no obligation for the issuer to issue the tranches. The maturity of HeidelbergCement tranches is between 7 and 364 days. The interest cost for CPs is lower than for comparable day to day money or short term loans, because in contrary to the committed credit lines, the banks deal only on a best effort basis.

IssuerHeidelbergCement AG
Maximum volume€1,500,000,000                              
Implementation dateJuly 24, 2013
Maturity                                   Between 7 and 364 days
Dealer of the day possibilityYes 
Clearing agencyClearstream Banking AG, Frankfurt am Main;
Euroclear Bank S.A./N.V., Brussels
Fiscal agentDeutsche Bank Aktiengesellschaft
Große Gallusstraße 10-14
60272 Frankfurt am Main
Germany
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Debt Maturity Profile

HeidelbergCement has a stable financing structure for the long term and a well-balanced debt maturity profile (see the following diagram). We will refinance the bonds of €300 million and US$ 750 million, that are due in March and August 2016, respectively, as well as the financial liabilities maturing in 2016, by making use of available liquidity, by issuing on the capital market or using free credit lines, depending on the capital market situation.

Debt Maturity Profile as at 31 December 20151) in €m

 
Debt Maturity Profile 2015
 

1) Excluding reconciliation adjustments of liabilities of €7.6 million (accrued transaction costs, issue prices, and fair value adjustments) as well as derivative liabilities of €46.7 million. Excluding also puttable minorities with a total amount of €30.1 million.

As at the end of 2015, we had liquidity reserves consisting of cash, securities portfolios, and committed bank credit facilities, amounting to €4.1 billion (see Group financial management section on page 85). With the €1.5 billion Euro Commercial Paper Programme and €10 billion EMTN Programme we also have framework programmes in the money and capital markets in place that allow us to issue the relevant securities within a short period of time.

Our objective is to further improve our financial ratios in the coming years in order to achieve the necessary preconditions for our credit rating to be upgraded further by the rating agencies. In particular, we have set the ambitious target to reduce the dynamic gearing ratio in a timely manner again to below 2.5x (31 December 2015: 2.0x) after the acquisition of Italcementi. An investment grade rating remains our objective as – given the capital-intensive nature of our business – favourable refinancing opportunities in the banking, money, and capital markets create an important competitive advantage.

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