Strengths are good operating profitability, resilient business operations, market dominance and a very low leverage. Constraints are size, geographical diversification and the focus on a single product category which is considered cyclical.

The upgrade reflects Unix Autó’s moderate deleveraging and strong interest cover that has led to an improved financial risk profile. Its discretionary retail business has also been performing well.

The Outlook change reflects the improved profitability and increasing demand for spare parts. Execution risk is diminishing as a new warehouse will go live in Q1 2023.

The Outlook change reflects the improved profitability despite weaker demand after the pandemic. The rating remains constrained by the execution risk of ongoing investments and the increased capex plan.

The affirmation reflects improved profitability despite weaker demand during the pandemic. However, the Negative Outlook remains due to market contraction and the increase in shareholder remuneration.

The Outlook change is driven by the prospect of lower demand amid the Covid-19 crisis, leading to weaker credit metrics than previously expected.

The rating is supported by the company’s leading position in Hungary in terms of market shares and product range. Declining profitability and the prospect of higher investment levels and weaker credit metrics are current constraints.