The rating affirmation reflects SunDell's recovering 2025 credit metrics from project handovers. It remains constrained by the company's small size, Budapest-focused pipeline, and GOPD Nyrt.'s reliance on SunDell dividends for holding-level debt service.

The downgrade is based on increased reliance of its parent (GOPD Nyrt.) on dividends from SunDell, which are needed to service debt at the holding level.

Pre-sales providing a backlog of above one year and the fixed-rate debt in place amid rising interest rates support the rating affirmation.

Strong sales in the first half of 2022, thanks to the retail green housing programme at low retail mortgage rates provide backlog until 2023, and the exclusively fixed-rate debt support the rating affirmation.

Strong performance in 2021, a significantly increased project pipeline supported by recent equity issuance in 2022 of HUF 9bn and a HUF 5.5bn green bond issued in 2021 support the affirmation in a challenging environment.

Scope Ratings affirms the B/Stable issuer rating as well as the senior unsecured debt rating for SunDell Estate Nyrt. after receiving updated company planning that includes a contemplated placement of a HUF 5bn senior unsecured green bond.