S&P Puts Holcim (Canada) On WatchDev

S&P Puts Holcim (Canada) On WatchDev
Published: 26 January 2015


Standard & Poor's (S&P) Ratings Services are placing its long-term corporate credit rating on Holcim subsidiary Holcim (Canada) Inc on CreditWatch with developing implications on the parent company’s plan to divest of its Canadian operations within the next few months.

"This CreditWatch placement follows our expectation that Holcim Canada's parent, Switzerland-based Holcim Ltd, will divest of its Canadian operations within the next few months in anticipation of potential competition authorities' requirements, as part of its plan to merge with Lafarge SA," said Standard & Poor's credit analyst Jamie Koutsoukis.
 
The CreditWatch placement reflects S&P’s view that Holcim Ltd. will likely complete the sale of its Canadian operations within the first half of 2015. Its time frame is consistent with Holcim Ltd's expectations that it will receive final bids for the assets it had listed for sale in July 2014 (which include Canada) by the end of January and that it will complete its merger with Lafarge S.A. in the first half of 2015. S&P’s CreditWatch developing placement reflects its uncertainty regarding the credit impact on Holcim Canada following its sale. “We believe such a transaction could result in a long-term corporate credit rating that is higher, lower, or the same as it is today,” the rating’s agency said,