The downgrade is based on the company’s continued deterioration in operating performance which is expected to lead to weaker credit metrics in 2024 coupled with a delayed market recovery.

The changed Outlook reflects Scope’s view that current market trends and strong competition, which put pressure on profitability, will hinder the timely recovery of Marso’s credit metrics.

The affirmation reflects MARSO’s adequate financials after the completion of the logistics centre in Dunaharaszti amid challenging market conditions.

The affirmation reflects MARSO’s resilient financials amid the Covid pandemic and the expectation that the financial risk profile will remain commensurate with the rating once investment in the logistics centre comes to an end.

The issuer rating mainly reflects the tyre wholesaler's dominant share in the Hungarian market. The high level of interest cover supports the rating, but low profitability and weak diversification are constraints.