The affirmation reflects Haniel’s solid financial profile, backed by a low loan-to-value that provides good headroom for bridging the lower income from portfolio companies and the expected temporary shortfall in total cost coverage to below 1.0x in 2020.

The affirmation reflects the intrinsic portfolio risks, the increased financial headroom and robust total cost coverage. The ratings are constrained by uncertainty around the future of METRO as a portfolio company and its impact on total cost coverage.

The rating affirmation reflects Scope’s continued view on Haniel’s consistent execution of its investment strategy which has resulted in increased portfolio diversification and more robust income streams without burdening the company’s indebtedness.

Announced acquisition of German engineering company ROVEMA supports Scope’s rating case as regards further portfolio diversification

Scope Ratings has updated its rating report on Franz Haniel & Cie. GmbH, rated BBB- with Stable Outlook.

The rating for Haniel Finance Deutschland GmbH is derived from the rating of the parent company, Franz Haniel & Cie. GmbH (Haniel), reflecting the unconditional and irrevocable guarantee given to debt holders of its financing subsidiary.

The rating affirmation reflects Scope’s continued view on Haniel’s consequent execution of its investment strategy in conjunction with a total cost coverage of more than 1.0x. The assigned S-2 short-term rating reflects Haniel’s liquidity profile.