Scope Ratings has been made aware of a change to the proposed bond terms, which now include an amortising repayment schedule (10% repayment annually in the fifth to ninth years, and a 50% balloon repayment in the last year), rather than the previous bullet repayment.

Scope confirms that future senior unsecured debt, such as the planned 10-year HUF 11.7bn 3.5% fixed bond to be issued in November 2020 under the MNB Bond Funding for Growth Scheme, will be rated under the senior unsecured debt category rating of B+. The category rating is based on the agency’s recovery expectations post bond issuance and bank refinancing, which translate into a rating equal to the issuer rating. Other terms of the proposed bond remain unchanged, including Vajda Real Estate Kft. as guarantor and the purpose of the bond, which is to refinance all current long-term loans outstanding, coupled with general corporate purposes and working capital financing needs.

Scope has determined that the proposal is not in and of itself, and at this time, a material rating driver and does not result in a rating or Outlook action or a withdrawal of current ratings on the debt instrument. Scope does not express an opinion as to whether this proposal could have other non-credit-related effects.

This publication does not constitute a credit rating action. Scope Ratings recently (on 13 October 2020) affirmed its B+ corporate issuer rating on Vajda Papír Kft. and changed the Outlook to Stable from Positive. For the official credit rating action release click here.

The methodology applicable for the reviewed rating and/or rating Outlook (Corporate Rating methodology 26 February 2020, Consumer Products Rating Methodology 30 September 2020) are available on https://www.scoperatings.com/#!methodology/list.
This monitoring note is issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0.
Lead analyst Henrik Blymke, Managing Director

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