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Holcim’s Shares Tests Post Spin-Off Announcement Lows, Spreads Tighter

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  • Holcim shares are -2.5% on the day though still +3% since Friday’s close after the Monday announcement that Holcim would spin-off it’s profitable US business. Credit spreads have performed well over the period, tightening at most maturities and by up to 15bps in places.
  • Outgoing CEO Jan Philipp Jenisch indicated firm commitment in an analyst call yesterday to a BBB+ rating for both entities and does not foresee a downgrade though he avoided commenting on the initial capital structure or leverage profile of the entities.

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