25th Mar 2021 19:10
(Alliance News) - Moody's Investors Service on Thursday has affirmed Dublin-based building materials company CRH PLC's Baa1 long term issuer rating.
The outlook remains stable, the ratings agency said.
CRH's rating is mainly supported by the group's good product diversification, high degree of vertical integration, good geographical diversification, credit metrics, and strong liquidity profile, Moody's said.
However, CRH's rating is constrained by the cyclicality of construction end-markets, ongoing lockdowns still restricting economic activity and weaker market outlooks for some construction sub-segment such as non-residential construction, mergers & acquisitions associated event risk given the company's history of multibillion acquisitions, and increasing shareholder remuneration with higher dividends complimented by share buybacks.
The stable outlook, meanwhile, reflects Moody's expectation that CRH will continue to exhibit relative resilience in its performance and will maintain credit metrics in line with Baa1 rating requirements.
"Today's rating action reflects the company's track record of maintaining strong credit metrics and its sustainably positive free cash flow generation. CRH's performance in 2020 remained resilient despite the pandemic and will likely remain solid as the economy recovers in the next 12-18 months", said Vitali Morgovski, a Moody's assistant vice president.
CRH shares closed 0.2% higher in London on Thursday at 3,279.00 pence each.
By Evelina Grecenko; [email protected]
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