Fitch Ratings has today assigned Lafarge EUR1bn 7.625% bond, maturing in 2014, and its GBP350m 8.75% bond, maturing in 2017, senior unsecured ratings of ’BBB-’ respectively. The bonds have been issued under Lafarge’s EUR9bn EMTN programme. The ratings are in line with Lafarge’s Long-term Issuer Default Rating (IDR) of ’BBB-’, which has a Negative Outlook. Lafarge’s senior unsecured rating is ’BBB-’ and its Short-term IDR is ’F3’.
The net proceeds of the bonds will be used for refinancing of existing indebtedness. The bonds are unsecured and rank equally with Lafarge’s other existing and future unsecured and unsubordinated debt.
Lafarge’s ratings continue to reflect its strong business profile, including its solid position in the international building materials industry, and notably its leading global position in both the high-margin cement sector and its complementary product portfolio. The group’s position is supported by its geographical diversification and established presence in mature markets, and its increased exposure to fast-growing emerging markets.