The upgrade reflects faster-than-expected deleveraging driven by solid operating performance.

The Outlook change reflects the faster-than-expected deleveraging driven by the sound operating performance.

The rating benefits from the issuer’s underlying low industry risk and comfortable profitability but is constrained by its limited scale and high customer concentration. The Outlook change reflects the expectation of a delayed deleveraging expectations.

The issuer rating of B+ reflects Zalaco’s robust, solid profitability and well-established business operations in western Hungary, but is constrained by small scale, limited diversification and high leverage.