Ratings agency Fitch has downgraded to negative the outlook for CRH, the building materials giant and largest company on the Irish Stock Exchange.

“Following a weak trading performance in 2013, Fitch expects CRH’s credit metrics to slightly deteriorate,” the agency said, adding that the company’s debt ratios were “higher than the level appropriate” for its previous stable rating.

“Fitch acknowledges that there are signs of improvement in trading conditions, especially in the US, with the potential for a modest recovery in 2014.”

It said disposals that may arise from an upcoming review by CRH could boost its ratios, and the outlook could be revised back up if that were the case.

It said disappointing sales volume in both the US and Europe, partially due to poor weather in the early part of last year, were expected “to result in weaker operating results” than it had forecast.

It expected a modest recovery in CRH’s fortunes this year, but profitability would remain “weak”.

The company’s share price shrugged off the move by Fitch, with the stock closing on the Iseq yesterday at €19.05, up almost 1.8 per cent.