The Negative Outlook reflects weaker operating profitability and credit metrics due to the strong price competition in a more challenging macroeconomic environment.

The changed Outlook reflects Scope’s view that Stavmat’s financial policy has not become less aggressive following its announcement of a new business plan involving further site acquisitions financed mostly by a HUF 3.2bn loan.

The rating affirmation reflects continued growth paired with stable debt levels. The Outlook change incorporates Scope’s view of a less aggressive financial policy.

The rating reflects the limited size and diversification, dependent on the local construction business cycle. However, a leading local market position, solid liquidity and adequate financial metrics amid the planned bond issuance are credit strengths.