The latest information on the rating, including rating reports and related methodologies, is available on this LINK.

On 21 January 2022, Vöröskő will auction its HUF 7bn senior unsecured green bond under the Hungarian Central Bank’s Bond Funding for Growth Scheme. The terms of the upcoming bond are already reflected in Scope’s current rating on senior unsecured debt, namely, a 10-year tenor ending in 2032 and 10% of face value to be amortised in 2027, 10% in 2028, 10% in 2029, 10% in 2030, 10% in 2031 and the remaining 50% in 2032. The coupon’s rate is fixed at 4.75% and will be payable yearly. The issue yield will be determined at the auction.

Bond proceeds will be used for financing future capex. Vöröskő is contemplating the following investments to expand capacity in the next two years: i) the acquisition of an office building in Budapest (HUF 0.6bn); ii) the robotisation of the warehouse in Üllő (HUF 1.1bn); and iii) the acquisition of rented shops, the opening of new shops and the development of equipment (HUF 5.3bn).

The overall rating case for Vöröskő BB/Stable rating is unchanged. Moreover, the placement of this senior unsecured debt does not alter Scope’s ‘average’ recovery expectations on Vöröskő’s senior unsecured debt in a hypothetical default scenario. This is reflected in the BB senior unsecured debt rating.

This publication does not constitute a credit rating action. Scope published the public rating on Vöröskő on 13 January 2022. For the official credit rating action release click here.