Significant capacity growth, followed by fast deleveraging and operation of a resilient business model with low volatility of operating profitability drive the upgrade of the issuer rating to BB from BB-.

The rating action is based on the improving trend expected for credit metrics in the coming years amid the finalisation of the company’s investment phase, with a financial risk profile likely to strengthen which support the Positive Outlook.

Following the affirmation of the BB/Stable issuer rating on 15 August 2024, Scope has released an associated analytical report on Bonafarm Zrt.

Following the affirmation of the BB/Stable issuer rating on 15 August 2024, Scope has released an associated analytical report on Pick Szeged Zrt.

Following the recent affirmation of the BB-/Stable issuer rating, Scope has updated its analytical report on ÉPKAR Zrt.

The downgrade is based on the sustained deterioration of credit metrics due to a prolonged market slowdown in Hungary, while the under review status reflects concerns over a potential liquidity crunch.

The rating is driven by Østfold Energi’s low-cost and environmentally friendly hydropower generation as well as strong credit metrics. High volatility of achievable power prices and low diversification are constraints.

The downgrade is driven by slower than expected execution of the issuer's capital recycling and deleveraging programme, which increases the risk of weaker credit metrics that do not support an investment grade rating.

The Outlook revision is based on increased debt in 2024 following SKL’s acquisition of Midtfjellet wind farm, as well as the expectation that leverage will exceed 1x in the coming years.

The rating continues to reflect a moderate business risk profile and weak credit metrics due to high leverage and the negative impact of expansionary capex from 2024 on free operating cash flow.