The change in Outlook reflects the risk that leverage will remain at a level that is not commensurate with the rating, given a significant reduction in available cash.

The downgrade is driven by Scope’s view of Ilija Batljan Invest’s announced intention to restructure its senior unsecured corporate bonds, which may be treated as a (Selective) Default under the agency’s rating definitions.

The rating action reflects a revision of Scope’s expectations for Lufthansa’s credit metrics, primarily due to a slower-than-anticipated recovery in profitability and the group’s capex plan.

The affirmation follows the announcement of Richter’s long-term strategy which outlines revenue and profitability improvement while maintaining a very strong financial risk profile.

The affirmation is based on the covenant reset agreement reached with bondholders and the company's largely unchanged business and financial risk profiles.

The changed direction of the under-review status follows the company’s proposal of a restructuring of its EUR 200m eurobond which is originally due in May 2025.

High aftermarket exposure, strong market positions and a strong financial risk profile support the rating. The low profitability and cyclicality of the OEM business are rating constraints. The revised Outlook reflects the business risks from tariffs.

The affirmation reflects credit metrics being broadly in line with Scope’s forecast despite weaker operating profitability in 2024.

The affirmation is driven by Haniel’s continuously good financial risk profile which offsets the persistent concentration risks on the holding’s recurring income and asset values.

The Outlook change is driven by the recovery in demand for Naturtex’s discretionary products and its profitability which have resulted in an improved financial risk profile.