Ratings of ACC (ACC; rated 'CRISIL AAA/stable/CRISIL A1+'), Ambuja Cement (Ambuja; rated 'CRISIL AAA/stable/CRISIL A1+), and Lafarge India (LIPL; rated 'CRISIL AA/stable/CRISIL A1+') will remain unaffected by Holcim (Holcim's; rated 'BBB/Stable/A2' by Standard & Poor's [S&P]) announcement to merge with Lafarge SA (Lafarge; rated 'BB+/negative/B' by S&P) subject to obtaining regulatory approvals.

Holcim held 50.3% and 50.5% stakes in ACC and Ambuja, respectively, as on Dec. 31, 2013. Lafarge held 86 per cent stake in LIPL as on Dec. 31, 2013.

CRISIL believes that the proposed merger will not impact the credit risk profiles of ACC, Ambuja, and LIPL as these companies operate with minimal financial linkages with their respective parent companies.

ACC's ratings continue to reflect its strong market position in the cement industry and strong financial risk profile, marked by strong cash flows, healthy gearing, strong debt protection metrics, and sound financial flexibility. Ambuja's ratings reflect its strong financial risk profile, robust operating efficiency, and leading market position in Northern and Western India. LIPL's ratings reflect its strong position in the cement market in Eastern India, robust operating efficiency, and strong financial risk profile.