The affirmation reflects Scope’s expectation that the sale of part of the business, BXI Kft., which currently operates the real estate brokerage business in Budapest, will have no impact on credit metrics.

The Outlook change reflects the expectation that despite pressure on profitability and leverage will remain in 2024, the metrics will sustain largely in line with Scope rating case.

The Outlook change reflects the expected pressure on profitability and leverage amid high integration costs in 2023 and 2024 from two recent acquisitions.

Following the recent affirmation of the BB-/Stable issuer rating, Scope has updated its analytical report on Otthon Centrum Holding Kft.

The rating affirmation follows a strong operational performance in H1 2022 and a net cash position at June 2022, but with signs of cooling demand for loan products and real estate in Hungary in H2 2022.

Scope takes no action on ratings for Otthon Centrum Holding Kft. as it expects the company to continue to pursue a debt-funded acquistion led growth strategy with leverage in line with previous expectations.

The ratings are primarily driven by the company's strong domestic market position and above-industry-average profitability, but constrained by its small absolute size and overall dependency on real estate and loan transaction volumes.