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Rating action

Scope Ratings GmbH (Scope) has today affirmed the BBB-/Stable issuer rating on Franz Haniel & Cie. GmbH (hereafter Haniel) and its financing subsidiaries Compartment Haniel Enkelfähig der NowCM Luxembourg S.A. and Haniel Finance Deutschland GmbH along with the BBB- rating on senior unsecured debt and the S-2 on short-term debt.

All ratings on Haniel Finance Deutschland GmbH have been withdrawn due to business reasons as the subsidiary does not actively issue public debt.

The full list of rating actions and rated entities is at the end of this rating action release.

Key rating drivers

Business risk profile: BBB- (unchanged). Haniel’s business risk profile benefits from robust and geographically diversified income via its portfolio companies, a transparent long-term investment philosophy, and prudent financial governance, although it is constrained by high portfolio and income concentration and limited portfolio liquidity.

Haniel’s business risk profile is assessed as solid and consistent with an investment-grade assessment, supported by the resilience and composition of its income-generating investment portfolio. A key positive factor is the holding’s exposure to three (CWS, TAKKT, BekaertDeslee), occasionally four (Metro in the past and ROVEMA in the future), established portfolio companies that generate recurring income, supplemented by significant returns from financial assets. While income concentration remains pronounced – with the top holding accounting for 60–70% and the top three for 90–95% of cash income at holding level – this risk is mitigated by the strong track record and reliability of these core portfolio assets. The sustainability of income generation remains credible, contributing positively to the overall business risk profile despite the concentration-related constraint.

Diversification is a clear strength in Haniel’s portfolio structure. The holding benefits from broad geographic exposure, with a strong footprint of the core portfolio companies across Europe and notable presence in the Americas and Asia. Scope assesses sector exposure as well balanced, with the largest single sector accounting for no more than 20–25% of the total gross asset value (GAV) of around EUR 5.2bn at YE 2024. This diversification provides resilience of the portfolio value against sector-specific or regional shocks. Nevertheless, the overall concentration of GAV in core investments continues to weigh on the assessment, mirroring the concerns around income dependency.

Portfolio liquidity – as measured by the share of liquid assets and the ability to easily sell portfolio assets – remains the central weakness in Haniel’s business risk profile. Scope continues to attach less importance to the limited exposure to liquid/listed portfolio companies, given i) the investment holding’s long-term investment approach, and ii) no expected need for short-term asset sales in light of a sustained sufficient total cost cover (TCC) and adequate liquidity. Therefore, the share of 15-30% of listed and other liquid assets (listed portfolio ventures and financial assets) of the GAV is not deemed as strongly detrimental to the credit profile.

On the contrary, Scope regards the company’s investment philosophy and the associated financial policy as credit-positive. The investment philosophy is geared towards long-term ownership and value creation through a disciplined buy-and-build approach and does not require frequent portfolio rebalancing which provides good transparency about the long-term structure of the investment portfolio. This approach is complemented by an increasing focus on financial assets under a multi-asset strategy which targets liquid and cash-generating investments. Moreover, Haniel’s conservative financial policy – including a low target level on its net financial debt and dividend distributions only when consistent with full cost coverage – adds further robustness to its business model and portfolio development. Furthermore, Scope considers the investment approach of the holding company to be positive from an ESG perspective. While Haniel has recently refocused its investment approach from a positive screening approach, which focused on direct investments in controlling stakes, to an exclusionary (blacklisting) approach, the old focus, which led to investments in some of the current portfolio companies, remains a positive ESG factor in the credit analysis. The holding company's investments in various portfolio companies and financial assets with a clear ESG focus continue to support a sustainable business profile and robust asset valuations (ESG factor: positive).

Financial risk profile: BBB (unchanged). The credit profile of the investment holding remains underpinned by its solid financial standing, which continues to mitigate the risks associated with income concentration among its key portfolio assets. Its financial risk profile is supported by a consistently good TCC, ranging between 1.0x and 1.3x, as well as by low and stable leverage.

In 2024, TCC was maintained at 1.3x (unchanged from 2023), underpinned by steady cash income from portfolio companies and financial assets, alongside a normalised cost base – particularly in terms of shareholder returns via dividends and share buybacks. Scope expects TCC to remain at around 1.2x between 2025 and 2027, supported by anticipated cash income of EUR 175m to EUR 185m from core portfolio holdings and financial assets. These inflows are projected to cover lean holding-level costs, interest payments, and shareholder distributions, estimated at roughly EUR 150m per year. In addition, Scope believes that Haniel would likely use its flexibility in shareholder remuneration to ensure full cost cover (TCC at or above 1.0x) should cash inflows fall below expectations. However, Scope projects that cash inflows would have to fall short of forecasts by around 10-20% before TCC would drop below 1.0x.

Similarly, leverage, as measured by Scope-adjusted loan/value* (LTV), remains supportive of the rating. LTV remained at an unchanged level at 12% at YE 2024 (compared to 14% at YE 2023), following a slight decrease in debt to EUR 650m at YE 2024 compared to around EUR 790m at YE 2023, which more than offset the slight decline of the investment portfolio’s market value to around EUR 5.2bn. The agency views Haniel’s target of EUR 500m on its net financial debt position at YE 2025 (EUR 605m at YE 2024) paired with the holding’s robust development of the portfolio market value as an assuring factor that LTV can be expected to remain at a comparatively low level. Still, Scope emphasises that there is a significant buffer for the development of Haniel’s portfolio market value, which – all else being equal – would have to deteriorate by around 40% before an LTV of more than 20% would be exceeded.

Liquidity: adequate (unchanged). Haniel’s liquidity remains strong despite the significant amount of short-term debt at YE 2024 which mostly comprises drawn volumes from credit facilities, commercial paper and shareholder loans, all of which is typically rolled over on a repeated basis. Debt maturing between 2025 and 2027 in the amount of about EUR 550m is well covered, mainly by a significant amount of committed, multi-year credit lines in an amount of around EUR 700m, complemented by positive free operating cash flow (positive TCC) and a small cash buffer of EUR 17m at YE 2024. As a result, Scope does not see any refinancing risk that would necessitate the sale of any shareholdings or financial assets.

Supplementary rating drivers: credit-neutral (unchanged). The rating does not incorporate any adjustments for supplementary rating drivers, such as parent support or governance and structure. Moreover, the investment-grade rating is well placed within the peer group and the company’s sizeable investment portfolio as signalled by its GAV of more than EUR 5bn does not require any rating adjustment.

One or more key drivers of the credit rating action are considered an ESG factor.

Outlook and rating sensitivities

The Stable Outlook reflects the agency's expectation that Haniel will maintain a sustained TCC in the range of 1.0-1.3x. Scope's rating case incorporates a TCC of 1.2x for the period 2025 to 2027, which implies that cash income from portfolio companies and financial investments would have to be around 10-20% below Scope's forecasts to be insufficient to fully cover the holding company's recurring costs including expected shareholder remuneration (i.e. before TCC falls below 1.0x). The Outlook also takes into account that gearing, as measured by LTV, will remain well below 20%, along with Haniel's plan to reduce net financial debt by YE 2025, and that concentration risks in the portfolio will persist in relation to the largest income-generating assets.

The upside scenario for the ratings and Outlook is:

1. Sustained TCC of above 1.3x, paired with a more balanced income contribution from different portfolio companies and/or financial assets

The downside scenarios for the ratings and Outlook are (individually):

1. TCC dropping to below 1.0x on a sustained basis
    
2. Increasing concentration risks with regards to top income-generating portfolio companies

Debt ratings

Debt is issued at the level of Franz Haniel & Cie. GmbH and its financing subsidiary Compartment Haniel Enkelfähig der NowCM Luxembourg S.A. under a EUR 5bn debt issuance programme and a EUR 1bn commercial paper programme. Debt issued by the financing subsidiary benefits from an unconditional and irrevocable guarantee from Franz Haniel & Cie. GmbH. Currently, no long-term public debt such as senior unsecured bonds or hybrid bonds are outstanding. Only private debt is currently issued by the compartment under the debt issuance programme. The financing subsidiary Haniel Finance Deutschland GmbH does not issue debt any longer.

Scope has affirmed the senior unsecured debt rating at BBB-, consistent with the rating action on the underlying issuer rating.

Concurrently, the agency has affirmed the S-2 short-term debt rating which is based on the underlying BBB-/Stable issuer rating and reflects the better-than-adequate liquidity position as well as solid access to bank funding and the capital markets.

Environmental, social and governance (ESG) factors

Over the last few years, Haniel has applied an investment strategy that focused on investments in controlling stakes of mature SMEs that meet specific ESG-focused criteria. More specifically, investments needed to match a business purpose that was in line with Haniel’s ‘People, Planet, Progress’ strategy. This strategy focused on companies/investments that serve global and sustainable megatrends in the areas of healthcare & well-being, circular economy, climate change and robotics & automation.

While Haniel has recently refocused its investment approach from the aforementioned positive screening approach to an exclusionary (blacklisting) approach, the old focus, which led to investments in some of the current portfolio companies, remains a positive ESG factor in the credit analysis. Scope views the old investment focus as a positive factor that has supported and continues to support a sustainable business profile and robust asset valuations.

All rating actions and rated entities

Franz Haniel & Cie. GmbH

Issuer rating: BBB-/Stable, affirmation

Short-term debt rating: S-2, affirmation

Senior unsecured debt rating: BBB-, affirmation

Compartment Haniel Enkelfähig der NowCM Luxembourg S.A.

Issuer rating: BBB-/Stable, affirmation

Short-term debt rating: S-2, affirmation

Senior unsecured debt rating: BBB-, affirmation

Haniel Finance Deutschland GmbH

Issuer rating: BBB-/Stable, affirmation and subsequent withdrawal**

Short-term debt rating: S-2, affirmation and subsequent withdrawal**

Senior unsecured debt rating: BBB-, affirmation and subsequent withdrawal**

*All credit metrics refer to Scope-adjusted figures.

** for business reasons

Stress testing & cash flow analysis
No stress testing was performed. Scope Ratings performed its standard cash flow forecasting for the company.

Methodology
The methodologies used for these Credit Ratings and/or Outlook, (General Corporate Rating Methodology, 14 February 2025; Investment Holding Companies Rating Methodology, 17 May 2024), are available on https://scoperatings.com/governance-and-policies/rating-governance/methodologies.
Information on the meaning of each Credit Rating category, including definitions of default, recoveries, Outlooks and Under Review, can be viewed in ‘Rating Definitions – Credit Ratings, Ancillary and Other Services’, published on https://www.scoperatings.com/governance-and-policies/rating-governance/definitions-and-scales. Historical default rates of the entities rated by Scope Ratings can be viewed in the Credit Rating performance report at https://scoperatings.com/governance-and-policies/regulatory/eu-regulation. Also refer to the central platform (CEREP) of the European Securities and Markets Authority (ESMA): http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml. A comprehensive clarification of Scope Ratings’ definitions of default and Credit Rating notations can be found at https://www.scoperatings.com/governance-and-policies/rating-governance/definitions-and-scales. Guidance and information on how environmental, social or governance factors (ESG factors) are incorporated into the Credit Rating can be found in the respective sections of the methodologies or guidance documents provided on https://scoperatings.com/governance-and-policies/rating-governance/methodologies.
The Outlook indicates the most likely direction of the Credit Ratings if the Credit Ratings were to change within the next 12 to 18 months.

Solicitation, key sources and quality of information
The Rated Entity and/or its Related Third Parties participated in the Credit Rating process.
The following substantially material sources of information were used to prepare the Credit Ratings: public domain, the Rated Entity and Scope Ratings' internal sources.
Scope Ratings considers the quality of information available to Scope Ratings on the Rated Entity or instrument to be satisfactory. The information and data supporting these Credit Ratings originate from sources Scope Ratings considers to be reliable and accurate. Scope Ratings does not, however, independently verify the reliability and accuracy of the information and data.
Prior to the issuance of the Credit Rating action, the Rated Entity was given the opportunity to review the Credit Ratings and/or Outlook and the principal grounds on which the Credit Ratings and/or Outlook are based. Following that review, the Credit Ratings and/or Outlook were not amended before being issued.

Regulatory disclosures
These Credit Ratings and/or Outlook are issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0. The Credit Ratings and/or Outlook are UK-endorsed.
Lead analyst: Sebastian Zank, Managing Director
Person responsible for approval of the Credit Ratings: Philipp Wass, Managing Director
The Franz Haniel & Cie GmbH Issuer Credit Rating/Outlook was first released by Scope Ratings on 23 February 2016. The Credit Rating/Outlook was last updated on 19 April 2024.
The Franz Haniel & Cie GmbH short-term Credit Rating and Senior unsecured debt Credit Rating were first released by Scope Ratings on 21 February 2017. The Credit Ratings were last updated on 19 April 2024.
Haniel Finance Deutschland GmbH Issuer Credit Rating/Outlook was first released by Scope Ratings on 24 February 2017. The Credit Rating/Outlook was last updated on 19 April 2024.
Haniel Finance Deutschland GmbH short-term Credit Rating and Senior unsecured debt Credit Rating were first released by Scope Ratings on 27 June 2018. The Credit Ratings were last updated on 19 April 2024.
The Compartment Haniel Enkelfähig der NowCM Luxembourg S.A. Credit Ratings/Outlook were first released by Scope Ratings on 19 April 2024. 

Potential conflicts
See www.scoperatings.com under Governance & Policies/Regulatory for a list of potential conflicts of interest disclosures related to the issuance of Credit Ratings, as well as a list of Ancillary Services and certain non-Credit Rating Agency services provided to Rated Entities and/or Related Third Parties.

Conditions of use / exclusion of liability
© 2025 Scope SE & Co. KGaA and all its subsidiaries including Scope Ratings GmbH, Scope Ratings UK Limited, Scope Fund Analysis GmbH, Scope Innovation Lab GmbH and Scope ESG Analysis GmbH (collectively, Scope). All rights reserved. The information and data supporting Scope’s ratings, rating reports, rating opinions and related research and credit opinions originate from sources Scope considers to be reliable and accurate. Scope does not, however, independently verify the reliability and accuracy of the information and data. Scope’s ratings, rating reports, rating opinions, or related research and credit opinions are provided ‘as is’ without any representation or warranty of any kind. In no circumstance shall Scope or its directors, officers, employees and other representatives be liable to any party for any direct, indirect, incidental or other damages, expenses of any kind, or losses arising from any use of Scope’s ratings, rating reports, rating opinions, related research or credit opinions. Ratings and other related credit opinions issued by Scope are, and have to be viewed by any party as, opinions on relative credit risk and not a statement of fact or recommendation to purchase, hold or sell securities. Past performance does not necessarily predict future results. Any report issued by Scope is not a prospectus or similar document related to a debt security or issuing entity. Scope issues credit ratings and related research and opinions with the understanding and expectation that parties using them will assess independently the suitability of each security for investment or transaction purposes. Scope’s credit ratings address relative credit risk, they do not address other risks such as market, liquidity, legal, or volatility. The information and data included herein is protected by copyright and other laws. To reproduce, transmit, transfer, disseminate, translate, resell, or store for subsequent use for any such purpose the information and data contained herein, contact Scope Ratings GmbH at Lennéstraße 5, D-10785 Berlin. Public Ratings are generally accessible to the public. Subscription Ratings and Private Ratings are confidential and may not be shared with any unauthorised third party.