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Following the release of Haniel’s H1 2018 figures and the announcement of the envisaged disposal of Haniel’s stake in German retailer METRO, Scope’s rating case for its BBB-/Stable issuer rating on Haniel is fully intact.

We believe that the METRO disposal fully fits Haniel’s investment strategy. While Scope recognises that the potential exit from METRO reduces overall portfolio liquidity/fungibility, the proceeds from the asset sale provide Haniel with further headroom to acquire controlling stakes in mature European SMEs. Scope estimates that the holding company’s total cost cover will remain above 1.0x over the next years.

Furthermore, Haniel’s H1 results provide further guidance on the company’s LTV which has not suffered despite the adverse share price developments experienced by METRO, CECONOMY and TAKKT in 2018, primarily due to a reduction of net debt. The holding company’s LTV including adjustments for pension obligations stood at a solid 15% at the end of June 2018.

On 27 June 2018 Scope affirmed its BBB- issuer rating for Franz Haniel & Cie. GmbH and its financing subsidiary Haniel Finance Deutschland GmbH with a Stable Outlook. The rating primarily 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.

This publication does not constitute a credit rating action. For the official credit rating action release click here.