The Outlook change reflects the increasing leverage and declining interest cover amid an unsupportive business environment for real estate developers. Current credit metrics leave limited headroom to offset earnings volatility.

Following the recent affirmation of the B+/Stable issuer rating, Scope has updated its analytical report on Wingholding Zrt.

The rating affirmation reflects the issuer’s strong market position, balanced development pipeline, and sound liquidity amid the unfavourable environment for real estate developers.

The rating affirmation reflects robust market conditions, whereas the Outlook revision follows an update to Scope's real estate ratings methodology and rising interest rates. Senior unsecured debt ratings have been lowered to B+ from BB-.

Wingholding Zrt. has detailed its plans to issue senior unsecured bonds in a total volume of up to HUF 27.5bn

The Outlook change reflects the lower leverage expectations and increasing visibility of revenues. Senior unsecured debt has been affirmed at BB-.

Following a monitoring review of Hungarian real estate group Wingholding Zrt., Scope takes no action regarding the issuer rating of B+/Stable. The instrument rating of BB- for senior unsecured debt also remains unchanged.

The downgrade follows the company's acquisition of Poland-based real estate company Echo Investment amid further plans to expand. Senior unsecured debt has also been downgraded to BB- from BBB-.

Scope assigns new BB issuer rating to Hungarian Wingholding Zrt. and BBB- senior unsecured debt rating.