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Communication Technologies plans to issue a HUF 2bn senior unsecured bond under the Bond Funding for Growth Scheme of the Hungarian National Bank (MNB) to finance acquisitions (HUF 1.8bn) and the creation of a maintenance JV (HUF 0.2bn). The terms of the upcoming bond are already reflected in Scope’s current rating on senior unsecured debt, namely, with an expected tenor of 10 years, with a fixed annual coupon of 5.25% p.a. and 5% amortisation starting in 2025 and in 2026, 10% amortisation in 2027 and 2028, 15% amortisation in 2029, 2030 and 2031, leaving a 25% balloon at maturity

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

This publication does not constitute a credit rating action. Scope published the public rating on Communication Technologies on 19 January 2022. For the official credit rating action release click here.