The affirmation reflects Scope’s view that Greenergy will retain good financial credit metrics despite pressure from some unfavourable macroeconomic trends and mounting capex.

The upgrade is driven by the combination of i) methodology changes, ii) a strongly improving operating performance reinforcing strong key credit metrics, and iii) the elimination of a negative rating adjustment related to peer context.

The rating actions follow the publication of Scope’s updated European utilities rating methodology which will likely have a positive impact.

The Positive Outlook reflects Greenergy’s improved financial setup as a consequence of significantly improved operating cash flow, which supports the potential for decreasing leverage.

Greenergy’s rating is backed by its power generation across Hungary, providing robust cash flow and solid interest cover. The rating is held back by its very small scale and outreach as well as increased leverage during its debt-financed expansion phase.