The downgrade stems from substantial EBITDA erosion and mounting liquidity risks ahead of scheduled amortizations. The Negative Outlook indicates persistent liquidity strain and increased refinancing risk should leverage stay at elevated levels.

The rating action follows a rapid deterioration in credit metrics amid operational disruptions in HR services and concerns regarding a potential recovery.

Growth in HR services and solar power generation as well as moderate leverage support the rating. Low profitability, moderate volatility of the temporary staffing headcount, high customer concentration and shortening debt maturity profile are constraints.

The rating action is driven by a growing core business, complemented by recurring revenues from HR services and solar power generation.

The rating action is driven by a good core business complemented by an increasing share of recurring revenue from HR services and solar power generation.

The rating action is driven by diversification into renewables and increasing margins despite the pandemic.

The issuer rating reflects the company's position as the fourth largest personnel services provider in Hungary but also its concentration and dependence on the domestic labour market.