A structural deterioration in the fiscal position and protracted headwinds from the Russia-Ukraine war drive the downgrade. A sound institutional framework, robust growth potential and still low public debt are credit strengths.

The periodic review has resulted in no rating action.

Robust budgetary performance, conservative budgetary, debt and liquidity management and low contingent liability risk support the rating. Low expenditure flexibility, coupled with cost pressures, is the main credit challenge.

Strong market positions, a broad customer base and high aftermarket exposure support the rating. Moderate profitability and volatile free cash flow are rating constraints.

The affirmation is driven by Haniel’s consistently solid total cost cover and modest leverage, which offset credit weaknesses related to concentration risks on recurring income and asset values.

KfW's issuer rating is aligned with the Federal Republic of Germany's AAA sovereign rating.

The affirmation reflects a resilient operating performance with stable growth. All ratings have been withdrawn due to business reasons.

No action has been taken on Class A and Class B notes issued by BCC NPLs 2020 S.r.l. following the monitoring review.

Rating affirmation reflects the recent strong operating performance as well as solid asset quality and solvency metrics.

A full-scale Middle-East conflict is unlikely but any further escalation of tensions would have significant adverse consequences for commodity markets and inflation, affirming geopolitical developments as a core credit challenge globally.