The downgrade is based on the sustained deterioration of credit metrics and liquidity with increased reliance on dividend cash flows from subsidiary SunDell Estate Nyrt.

Additional contracted debt and increased development costs are causing a significant deterioration of the financial risk profile, whereas pre-sales providing a backlog of above one year supports the rating.

The ratings are primarily driven by the dependence on subsidiary SunDell Estate Nyrt. The moderate leverage benefits the rating while the lack of recurring revenues and the concentrated project pipeline are constraints.

80% of the bond notional is guaranteed by the Hungarian Development Bank MFB.

The ratings are primarily driven by the company’s dependence on its subsidiary, SunDell Estate Nyrt., and its moderate leverage. The lack of recurring revenues and the concentrated project pipeline are rating constraints.