Bangkok--15 Jan--Fitch Ratings Fitch Ratings (Thailand) Limited has today affirmed the National Long-term ‘AA(tha)’ ratings on three series of guaranteed bonds issued by Holcim Capital (Thailand) Limited - Series I due 2008, Series II due 2010 and Series III due 2012 which amount to THB7.6 billion. The Outlook on the ratings is Stable. The ratings are entirely based on the irrevocable and unconditional guarantee provided by Swiss-based Holcim Ltd (Holcim, ‘BBB+’/Stable) of up to THB8.8bn, which fully covers the obligations under the guaranteed bonds. Holcim is now rated two notches below Thailand’s International Long-term local currency Issuer Default rating of ‘A’ with a Stable Outlook. This results in the National ratings of the guaranteed bonds being two notches below Thailand’s sovereign National rating of ‘AAA(tha)’. Fitch says that any International rating divergence between Holcim and Thailand may affect the issue’s National ratings. In addition, a one notch change in the International rating could result in a greater-than-one—notch change in the National rating. The ratings of the guarantor, Holcim, reflect its leading market position in cement, aggregates and concrete, with sales of nearly CHF24bn and a cement capacity of over 190 million tons in 2006. The group has superior geographical diversification with an unmatched presence in emerging markets, including Latin America, central/eastern Europe and Southeast Asia, which offer more dynamic growth and higher margins than mature markets. Such an extensive and unmatched global reach has been a key feature of Holcim’s well-executed strategy of the past few decades, and has helped mitigate cyclicality in recent years. The ratings also reflect its strong cash flow generation ability, its above-sector-average operating EBITDA margins and its adequate capital structure, supported by shareholder commitment towards maintaining sound financial profile. Nonetheless, Fitch highlights that recent acquisition activity might temporarily put pressure on the group’s credit profile. The agency estimates that net debt/EBITDA could increase to over 2.3x at end-2007 (end-2006: 2.1x), the maximum level that Fitch deems appropriate for the current rating. In this event, a failure to restore it within the stated parameter within a 18-month period might result in downward rating pressure. Incorporated in 1998, Holcim Capital (Thailand) Limited is set up as a fund raising company for the group’s business in Thailand. Its existing shareholders are Thai Roc-Cem Limited (51% stake) and Holderfin B.V. Netherlands (49% stake). Thai Roc-Cem Limited is 49%-owned by Holcim Participations (Thailand) Limited, a 100%-owned subsidiary of Holderfin B.V., which in turn is wholly-owned by Holcim — the guarantor.