The rating action follows the announcement of the sale of Éltex, the issuer's industrial waste management subsidiary, which, once completed, is expected to improve the financial risk profile but weaken the business risk profile.

The Outlook change reflects Scope’s expectations of improving transparency on long-term MOHU subcontractor status and audited consolidated accounts, while maintaining a strong financial risk profile.

The upgrade is based on its improved financial risk profile amidst tough economic conditions and the well-integrated acquisition of Eltex Kft., although the limited size is still a rating constraint.

The rating is based on the Hungarian municipal waste management company’s issuer rating of B+/Stable and the guaranteed nature of the senior unsecured bond.

Global Refuse’s rating is driven by its strong financial risk profile, especially its strong ability to generate free cash flows as a regional key player in municipal waste management.