We think that the challenging trading environment that has led to a profit warning for HelloFresh SE will continue raising uncertainty regarding the execution of the business turnaround and the timing and trajectory of earnings recovery that underpin our base case forecast and credit metrics expectation for 2026-2028. We assume HF will require up to €100 million to cushion the potential volatility in its day-to-day operations and therefore deduct this amount from the cash we consider available for debt repayment, which affects our adjusted debt calculation. At the same time, HF’s focus on cash flow generation, prudent capital allocation, and proactive management of its liquidity and capital structure all support the current rating. We therefore lowered to'BB'from'BB+'
