The rating action reflects the successful refinancing of bank loans and the gradual recovery of operating profitability despite credit metrics remaining weak.

A deterioration of the financial risk profile drives the downgrade as weaker operational profitability and an increased need for external working capital financing cause leverage to increase.

The rating action reflects greater uncertainty following the announcement of plans for a corporate reorganisation, made necessary by the challenging business environment.

The ratings are primarily driven by the company's robust diversification and operating profit growth but constrained by execution risks and its limited size.