The rating continues to reflect a moderate business risk profile and weak credit metrics due to high leverage and the negative impact of expansionary capex from 2024 on free operating cash flow.

High leverage and low profitability driven by high input costs are compensated for by a very comfortable liquidity cushion after postponement of planned expansionary capex.

The rating reflects high leverage and profitability pressure in 2022 due to strong increases in livestock and energy costs. Nevertheless, rating benefits from a comfortable liquidity cushion post green bond issuance.

The rating reflects the company’s high leverage and negative free cash flow amid a large capex plan. Kometa’s position as one of the largest and most efficient pork processors in Hungary and its wide product portfolio support the rating.