The rating actions reflect the resilient operating performance, good cash flow and the timely execution of investments resulting in a larger good-quality fixed-asset base and a better recovery assessment.

The affirmation reflects revenue exceeding pre-Covid levels, good profitability and cash flow generation and deployed capex with manageable leverage in an inflationary environment.

The rating at BB is supported by a strong market position in Hungary; high margins despite the pandemic; significant growth potential; and repaid bank debt at the holding level. The rating is constrained by low diversification and increasing leverage.

The ratings are driven primarily by the company's strong position in Hungary, high margins, and significant growth potential.