MONDAY, 20/02/2023 - Scope Ratings GmbH
      Download PDF

      Scope has completed a monitoring review on Futureal Development Holding Kft.

      No impact on the senior unsecured debt rating from the EUR 125m of green bonds issued in a private placement.

      Scope Ratings GmbH (Scope) monitors and reviews its credit ratings on an ongoing basis and at least annually, or every six months in the case of sovereigns, sub-sovereigns and supranational organisations.

      Scope performs monitoring reviews to determine whether material changes and/or changes in macroeconomic or financial market conditions could have an impact on the credit ratings. Scope considers all available and relevant information when undertaking the monitoring review.

      Monitoring reviews are conducted by performing a peer comparison, benchmarking against the rating-change drivers, and/or reviewing the credit ratings’ performance over time, as deemed appropriate by the Lead Analyst or Analytical Team Head, in addition to an assessment of all aspects of the relevant methodology/ies, including key rating assumptions and model(s). Scope publicly announces the completion of each monitoring review on its website.

      Scope completed the monitoring review for Futureal Development Holding Kft. and Futureal Holding B.V. including their current ratings (issuer rating: BB/Negative; senior unsecured debt rating: BB) on 16 February 2023.

      This monitoring note does not constitute a credit rating action, nor does it indicate the likelihood that Scope will conduct a credit rating action in the short term. Information about the latest credit rating action connected with this monitoring note along with the associated rating history can be found on

      Key rating factors

      On 31 January 2023, Futureal issued EUR 125m in green bonds (face value) in a private placement. Net proceeds will finance real estate development, investment and refurbishment projects in accordance with the company’s green finance framework.

      After the EUR 125m bond issue, the rating case for Futureal’s BB/Negative remains unchanged, which is in line with Scope’s expectations that the company will prudently continue to grow its recurring revenue base while keeping leverage under control (i.e. Scope-adjusted loan/value ratio below 60%) and Scope-adjusted EBITDA/interest cover above 1x. Furthermore, the bond issuance does not alter Scope’s ‘average’ recovery expectations for senior unsecured debt (rated BB) in a hypothetical default scenario.

      The rating continues to reflect Futureal’s solid market position and strengthened diversification in terms of geographies and asset classes. The latter is further enhanced by the recently announced acquisition of majority stakes in Auxesia Homes Ltd. and St. Arthur Homes Ltd. (i.e. 60% and 63% respectively, purchased from its sister company Cordia International Zrt, rated BB/Negative), two profit-oriented providers of affordable housing in the United Kingdom. The rating is also supported by the long-dated and fixed-rate debt maturity profile, which safeguards against the impact of rising interest rates. The main rating constraints are Futureal’s high portfolio concentration in Budapest, elevated indebtedness to fund growth and limited headroom under the current interest cover.

      This publication does not constitute a credit rating action. Scope affirmed the issuer ratings of Futureal Development Holding Kft and Futureal Holding B.V, and revised the Outlook to Negative from Stable, on 4 November 2022. For the official credit rating action release click here.

      The methodologies applicable for the reviewed ratings and/or Outlooks (European Real Estate Rating Methodology, 25 January 2023; General Corporate Rating Methodology, 15 July 2022), are available on
      This monitoring note is issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0.
      Lead analyst: Fayçal Abdellouche, Specialist

      Potential conflicts
      See under Governance & Policies/EU Regulation/Disclosures for a list of potential conflicts of interest related to the issuance of Credit Ratings.
      Scope Ratings provided the following Other Services to the Rated Entity and/or its Related Third Parties within the two years preceding this Credit Rating action: Rating Assessment Service.

      © 2023 Scope SE & Co. KGaA and all its subsidiaries including Scope Ratings GmbH, Scope Ratings UK Limited, Scope Analysis GmbH, Scope Investor Services GmbH, and Scope ESG Analysis GmbH (collectively, Scope). All rights reserved. The information and data supporting Scope’s ratings, rating reports, rating opinions and related research and credit opinions originate from sources Scope considers to be reliable and accurate. Scope does not, however, independently verify the reliability and accuracy of the information and data. Scope’s ratings, rating reports, rating opinions, or related research and credit opinions are provided ‘as is’ without any representation or warranty of any kind. In no circumstance shall Scope or its directors, officers, employees and other representatives be liable to any party for any direct, indirect, incidental or other damages, expenses of any kind, or losses arising from any use of Scope’s ratings, rating reports, rating opinions, related research or credit opinions. Ratings and other related credit opinions issued by Scope are, and have to be viewed by any party as, opinions on relative credit risk and not a statement of fact or recommendation to purchase, hold or sell securities. Past performance does not necessarily predict future results. Any report issued by Scope is not a prospectus or similar document related to a debt security or issuing entity. Scope issues credit ratings and related research and opinions with the understanding and expectation that parties using them will assess independently the suitability of each security for investment or transaction purposes. Scope’s credit ratings address relative credit risk, they do not address other risks such as market, liquidity, legal, or volatility. The information and data included herein is protected by copyright and other laws. To reproduce, transmit, transfer, disseminate, translate, resell, or store for subsequent use for any such purpose the information and data contained herein, contact Scope Ratings GmbH at Lennéstraße 5 D-10785 Berlin. 

      Related news

      Show all
      Scope downgrades Deutsche Konsum’s issuer rating to B under review for a developing outcome

      30/11/2023 Rating announcement

      Scope downgrades Deutsche Konsum’s issuer rating to B under ...

      Scope affirms Sunnhordland Kraftlag AS' issuer rating at BBB+; changes Outlook to Positive

      29/11/2023 Rating announcement

      Scope affirms Sunnhordland Kraftlag AS' issuer rating at ...

      Scope places ITK Holding’s BB- issuer rating under review for a possible upgrade

      28/11/2023 Rating announcement

      Scope places ITK Holding’s BB- issuer rating under review for ...

      Credit Lines: might COP 28 be a boon for green bonds?

      28/11/2023 Research

      Credit Lines: might COP 28 be a boon for green bonds?

      Scope withdraws ratings on Veritasi Homes & Properties Ltd

      23/11/2023 Rating announcement

      Scope withdraws ratings on Veritasi Homes & Properties Ltd

      Tender offer of Samhällsbyggnadsbolaget i Norden AB

      21/11/2023 Monitoring note

      Tender offer of Samhällsbyggnadsbolaget i Norden AB