CRH establishes $1bn US commercial paper programme
Dublin-based building materials firm says it may use programme from ‘time to time’
CRH: group said that it may use the programme to issue unsecured short-term promissory notes in the private placement market. Photograph: Brenda Fitzsimons
CRH has established a commercial paper programme in the United States, allowing it to issue up to $1 billion of debt.
The Dublin-based building materials group said that it may use the programme to issue unsecured short-term promissory notes in the private placement market in the US “from to time” .
The programme will see the group diversify its funding sources, even as it focuses on deleveraging following its transformational €6.5 billion purchase of assets that European rivals Lafarge and Holcim were forced to sell last year to appease competition authorities as part of their merger.
Moody’s, the ratings firm, affirmed its Baa2 long-term rating and stable outlook on CRH following the commercial paper programme announcement. It said CRH’s ratings were supported by its good product and geographical diversification and more resilient performance than peers to the industry’s downturn between 2009 and 2011.
On a more negative note, Moody’s highlighted that the North American and, to a greater extent, the European markets, remain subdued since the downturn.