The rating action reflects increased leverage and a low interest coverage ratio, which put pressure on the financial risk profile. Current credit metrics leave limited headroom given high inflation and a high interest rate environment.

The affirmation follows the company’s refocusing on a develop-to-hold strategy and its successful execution thus far, providing more stable rental cash flows, while the Outlook reflects the low interest cover in the current market environment

Scope affirms issuer and debt class ratings for Futureal after updated business plan that incorporates additional bond taps of up to HUF 32.3bn until year-end.

The ratings are primarily driven by the company's robust market position but remain constrained by increasing leverage and inherent development risks.

The ratings are primarily driven by the company's robust market position but are constrained by increasing leverage and inherent development risks.