Following the recent affirmation of the BB-/Stable issuer rating, Scope has updated its analytical report on Market Építő Zrt.

The affirmation is driven by solid financial metrics despite a decrease in profitability due to competitive pressures, high building material prices and an unsupportive macroeconomic environment.

The affirmation is driven by good 2021 results and solid financial metrics that provide some headroom against impending headwinds including a shorter backlog, higher input prices and an unsupportive macroeconomic outlook.

The Outlook change is driven by the reduced financial pressures from the large investment plan due to stronger operating cash flows.

The Outlook change is driven by the increased risk of pressure on the company’s financial risk profile from a new, more ambitious investment plan.

The rating is driven by Market's leading position in the Hungarian construction segment and solid financial metrics. The company's small scale, lack of geographical diversification, and concentration risks are credit-negative.