Wienerberger Ends External Rating by S&P

Published: December 10, 2012; 20:20 · (Vindobona)

Rating relationship with Moody’s (Ba2, stable outlook) remains unchanged, the Austrian brick producer says.

Wienerberger Ends External Rating by S&P / Picture: © Wienerberger

After extensive analysis, Wienerberger AG has decided to terminate its corporate rating by Standard & Poor’s (“S&P“). The latest long-term rating issued by S&P at the beginning of September confirmed Wienerberger AG’s BB rating and stable outlook. The rating relationship with Moody’s (Ba2, stable outlook) remains unchanged. The decisive factors for this step were economic considerations and the declining importance of ratings for the securities issued by the company.

No negative effects expected on Group financing

Willy Van Riet, Chief Financial Officer of Wienerberger AG, does not anticipate any change in the Group’s financing strategy from the end of the S&P rating: “Our financing strategy has focused for many years on the issue of smaller, regional bonds and on bank loans under € 250 million. In this segment, external ratings do not play a major role in establishing the conditions or determining the success of the issue. In fact, only eight of 62 bond issuers in Austria are rated. These companies have successfully placed in part very large issues at good conditions, even without a rating. If Wienerberger decides at some point in the future to place larger bonds on the international markets, investors can still rely on a rating by a reputable external agency. I therefore expect no negative effects at all on Wienerberger’s capital market access or financing costs in the future.“

Wienerberger with leading positions in bricks, roof tiles, concrete pavers and pipe systems

Wienerberger is the world’s largest producer of bricks (Porotherm, Terca) and the market leader for clay roof tiles (Koramic, TONDACH) in Europe and concrete pavers (Semmelrock) in Central-East Europe. In pipe systems (Steinzeug-Keramo ceramic pipes and Pipelife plastic pipes), Wienerberger is one of the leading suppliers in Europe. In 2011 the Wienerberger Group generated revenues of € 1,915 million and operating EBITDA of € 240 million with 226 plants.

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