The affirmation reflects credit metrics that have remained strong in a challenging market of high inflation and interest rates, as well as the government investment freeze. This is supported by the company’s robust yet concentrated order backlog.

The improved Outlook reflects credit metrics that have remained well within Scope’s rating guidance and the robust order backlog providing visibility on future revenues amid an unsupportive Hungarian construction market.

The Outlook change is driven by the risk that leverage remains high amid impending headwinds including higher input prices, a lower order intake and an unsupportive macroeconomic outlook.

The rating is driven by the company’s vertically integrated business model and relatively high profitability and is constrained by a strong increase in leverage needed to support growth through its own development projects.