The Outlook change reflects deteriorating credit metrics in 2023 and the expectation of a slow recovery, with risk that leverage will remain at or above 4x for a prolonged period.

The downgrade reflects Scope’s view that weakening profits, driven by the negative market trend, will keep credit metrics under pressure in the medium term.

The affirmation reflects the company’s good results in 2021 and the limited impact that the acquisition of ARS has had on its financial risk profile and profitability.

The affirmation reflects the good 2020 results and the expectation that the financial risk profile will not be materially constrained by the ARS acquisition.

The credit rating mainly reflects AKH's leading market position in the Hungarian tyre retailing industry and investment grade credit metrics. The rating is held back by the group's small size, low profitability and rather weak diversification.