The rating benefits from: i) the company’s leading position as a real estate and financial services broker in Hungary; ii) a granular customer base as Otthon Centrum focuses on the retail segment, which has very limited repeated business; and iii) a strong financial risk profile, with debt protection historically well above 10x.

Negative rating factors include the company’s small size within highly fragmented markets and poor geographical diversification, which exposes the company to the macro-economic trends of only one market.

This monitoring note does not constitute a rating action, nor does it indicate the likelihood of a credit rating action in the short term. On 14 November 2022, Scope affirmed the issuer rating at BB-/Stable and the senior unsecured debt rating at BB-. Click here for the corresponding rating action release. The latest information on the credit ratings in this monitoring note along with the associated rating history can be found on www.scoperatings.com.