Resilient operations in 2023, strong credit metrics and executed growth outside Hungary – which reduces reliance on a concentrated order book and partially mitigates the risk and impact of volatile cash generation – drive the affirmation.

The affirmation reflects its robust backlog that provides some cashflow visibility. Low diversification, dependency on state tenders, and uncertainty over its ability to maintain credit metrics, due to expected debt increase, are constraints.

The company’s solid 2021 financial performance supports the rating. The risk of a slowdown in cash flow amid impending headwinds including higher input prices, a lower order backlog and an unsupportive macroeconomic environment drive the Outlook change.

The Outlook change reflects Duna Aszfalt's resilient financial performance in 2020. It also reflects an improved backlog, with several tenders signed in the last few quarters which will support cash flow and credit metrics in the next years.

Profitability and credit metrics continue to support the rating. The company's cyclical industry, low diversification, and dependency on state tenders as well as uncertainty over its ability to maintain credit metrics via new tenders are constraints.

Profitability and credit metrics support the rating. The cyclical industry, low diversification, and dependency on state tenders are constraints. The Stable Outlook reflects the expected successful execution of the current order backlog.