CRH 'less damaged than rivals by European lockdowns'

CRH chief executive, Albert Manifold, whose firm was given an "overall best-in-class credit rating" by Moody's. File photo: Gary O'Neill

CRH has been singled in "companies to watch" for 2021 in a glowing assessment by Moody's because it says the building materials giant has been less damaged by the Covid-19 lockdowns than some of its European rivals. 

In its outlook on European building materials firms, Moody's reiterates that it has a stable rating on the Irish-run multinational.

Moody's analysts said that CRH has had "only minor disruption so far from coronavirus, given [its] large presence in the US where construction markets remain robust", while its "focus on developed markets reduces [the] risk profile in the current environment and strong credit metrics result in overall best-in-class credit rating".

Moreover, the analysts said that CRH has a "conservative financial policy with a commitment to a solid investment-grade". 

After plunging by billions of euro in March, CRH shares have recovered to trade just below their 2019 year-end levels. The shares value the multinational at just over €26.5bn. 

The Moody's assessment will likely come as welcome news to the once under pressure management at CRH activist shareholder Cevian from Sweden increased its shareholding in the firm this year.

Also on Moody's "companies to watch" were Saint-Gobain, LafargeHolcim, Heidelberg Cement, Imerys, and Wienerberger.