Vasútvill's severe liquidity problems and the lack of recovery of its order backlog drive the downgrade, which concludes a period of the ratings being under review.

Slow recovery of the order backlog raises concerns on Vasútvill’s business viability and continues to weigh on business and financial risk profiles. Limited visibility in the short-term recovery of financial figures justifies the under-review placement.

The rating action reflects Vasútvill’s weak order backlog that raises concerns on the business profile's viability. Liquidity still benefits from a low fixed cost base and non-significant loan maturities in the very short-term.

The downgrade reflects weakening credit metrics, due to a significant decline in the order backlog. A further downgrade is possible amid impending headwinds including a continued weak backlog as the Hungarian government lowered its budget for the segment.

The downgrade reflects a deterioration of the financial risk profile due to a significant decline of the order backlog. The Outlook is Negative amid headwinds including the low order intake and an unsupportive macroeconomic environment.

The Outlook change is driven by the shrinking construction backlog that could lead to lower revenues and thinner profit margins.

The affirmation reflects Vasútvill's niche market position, long track record and healthy financial metrics. The rating is held back by the company's small size, concentrated backlog and customer portfolio as well as weakened profitability.

The rating is supported by the company's niche market position, long track record, and healthy financial metrics. The company's small size as well as its concentrated backlog and customer portfolio are the main constraints.