Announcements

    Drinks

      Updated analytical report on Forrás Nyrt.
      THURSDAY, 04/08/2022 - Scope Ratings GmbH
      Download PDF

      Updated analytical report on Forrás Nyrt.

      Scope Ratings has updated its analytical report on Forrás Nyrt., rated B with Stable Outlook.

      The issuer rating on Forrás, a Budapest-based industrial and real estate investment holding, is supported by i) its record of over 20 years in the sourcing, development and sale of manufacturing companies and real estate projects over several asset classes in Hungary; ii) the significant profit potential from the 20 recently (2021) acquired solar parks and those newly built and operational since June 2022; and iii) hidden reserves in the real estate portfolio that translate into moderate leverage and an additional liquidity source.

      The issuer rating is mainly constrained by total cost coverage, which is expected to remain below 1.0x until 2023, when it improves in line with increasing dividend income from the newly acquired solar parks and other acquisitions in the sector. Other rating constraints are the company’s lack of size and scope in the industrial and real estate segments, and its potentially high cash flow volatility due to the investment focus on solar power production. The complex corporate structure incorporating a variety of businesses, consolidation forms and financing structures, combined with key person risk (ESG factor: credit-negative) and a lack of long-term investment strategy, limits visibility on future cash flow.

      This monitoring note does not constitute a rating action, nor does it indicate the likelihood of a credit rating action in the short term. The latest information on the credit ratings in this monitoring note along with the associated rating history can be found on www.scoperatings.com.

      Click here to access the full report.

      Related news

      Show all
      Scope affirms BB- issuer rating on Hungarian real estate company Futureal; Outlook revised to Stable

      4/7/2025 Rating announcement

      Scope affirms BB- issuer rating on Hungarian real estate ...

      Scope affirms B+/Negative issuer rating on Hungarian real estate developer Wingholding Zrt.

      4/7/2025 Rating announcement

      Scope affirms B+/Negative issuer rating on Hungarian real ...

      Spanish Corporate Outlook: credit conditions improve; shallow local debt market remains constraint

      3/7/2025 Research

      Spanish Corporate Outlook: credit conditions improve; shallow ...

      Scope affirms B+/Stable rating on AutoWallis Nyrt.

      1/7/2025 Rating announcement

      Scope affirms B+/Stable rating on AutoWallis Nyrt.

      Scope publishes final Chemicals Rating Methodology

      30/6/2025 Research

      Scope publishes final Chemicals Rating Methodology

      Scope publishes analytical report on Helgeland Kraft

      30/6/2025 Monitoring note

      Scope publishes analytical report on Helgeland Kraft