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

Rating action

Scope Ratings GmbH (Scope) has today upgraded the issuer rating of Globe Trade Centre S.A. (GTC) and its subsidiary GTC Real Estate Development Hungary Zrt. to B from B-, and assigned a Positive Outlook. The senior unsecured debt rating of both issuers has been affirmed at B. Concurrently, Scope has affirmed the B rating of the green notes (XS2356039268) issued by GTC Aurora Luxembourg S.A., which GTC unconditionally and irrevocably guarantees. The rating action resolves the under-review status for a developing outcome.

The upgrade reflects the easing of refinancing pressure and the improvement in GTC’s liquidity assessment following the successful refinancing of its EUR 500m senior unsecured bond due in June 2026. While liquidity remains inadequate, residual refinancing risks are concentrated in upcoming secured bank maturities, which Scope considers manageable to address. GTC continues to actively engage with its core banking partners to secure facility extensions, although these discussions are still ongoing.

The Positive Outlook reflects Scope’s view that GTC will successfully manage the refinancing of its residual secured bank facilities falling due until end-June 2026. Further orderly progress in refinancing would ease liquidity risks and support a normalisation of the debt maturity profile.

The full list of rating actions and rated entities is at the end of this rating action release.

Key rating drivers

Business risk profile: BB+ (revised from BBB-). The revision of the business risk profile reflects the deterioration in GTC’s operating profitability, driven by higher cost intensity across the portfolio and temporary margin dilution from the integration of the German residential portfolio, which has proven more pronounced than initially expected.

GTC’s business risk profile remains supported by its position as one of the leading commercial real estate companies in Central and Eastern Europe and its geographically diversified asset base across seven countries.

The company remains medium-sized in a European context, with Scope-adjusted total assets* of EUR 3.0bn as of end-June 2025 (up 14% YoY), primarily driven by the acquisition of the German residential portfolio. Poland, Hungary and Germany account for the largest markets.

The occupancy of the commercial real estate portfolio was stable at 86% as of June 2025, with a weighted average unexpired lease term of 3.5 years (H1 2024: 3.4 years).

While GTC maintained solid profitability in 2024, with EBITDA margin of 76% (down 2.4 pp YoY), Scope notes a weakening in profitability during H1 2025, mainly driven by additional service and administrative costs related to the German residential portfolio. Scope anticipates a gradual improvement in profitability from 2026 onwards, but considers that the recovery in margins and the realisation of integration benefits may lag previous expectations.

Financial risk profile: B (revised from B-). The revision of the financial risk profile reflects the improved liquidity assessment and a more manageable refinancing schedule following the successful completion of the EUR 500m senior unsecured bond refinancing. With that, GTC has removed the most significant refinancing event among the 2026 maturities.

EBITDA interest cover is expected to decline from 2.4x in the last twelve months to end-June 2025 to below 1.7x in 2026, driven by the debt-funded acquisition of the German residential portfolio and higher funding costs. GTC’s average cost of debt stood at 3.68% as of end-June 2025 and is expected to increase further with the 6.5% secured notes, coupon step-ups on the HUF bonds, and upcoming refinancing at higher margins.

GTC’s leverage, as measured by the loan/value ratio, stood at 51% as of end-June 2025 (up 2.9 pp YoY; down 1.2 pp from end-December 2024), reflecting the debt-funded acquisition of the German residential portfolio. The company aims to deleverage through cost-efficient modernisation measures (supported by subsidised funding) and selective asset disposals (targeting approximately 40% of the portfolio over time). Execution risks related to timing, volume and pricing remain material, and Scope expects only gradual deleveraging through H2 2026.

Liquidity: inadequate, -2 notches (revised from -3 notches). Liquidity remains inadequate, reflecting insufficient coverage of upcoming debt maturities, mainly secured bank loans, despite the prepayment secured for the EUR 500m bond due in June 2026 through the issuance of new secured notes (EUR 455m) and earmarked deposits (EUR 45m).

Scope incorporates this positive development by reducing the negative liquidity adjustment to two notches (from three previously). The successful bond refinancing has materially eased liquidity and refinancing risks, though around EUR 309m of secured bank loans maturing by end-June 2026 remain to be addressed. These include EUR 99m of loans secured by German residential assets (for which extensions have already been negotiated), EUR 86m by Polish commercial assets and EUR 124m by Hungarian properties.

Available cash sources alone would not fully cover upcoming obligations, and the company does not currently benefit from a committed revolving credit facility. Failure to secure the refinancing of upcoming secured debt in an orderly manner could result in a further deterioration of Scope’s liquidity assessment.

Scope highlights that the bonds issued by GTC Real Estate Development Hungary Zrt under the Hungarian National Bank’s Bond Funding for Growth Scheme have a covenant requiring the accelerated repayment of the outstanding nominal debt amount (HUF 59.4bn) if certain debt rating triggers are met. Under the amended terms, if the rating falls below B+ but remains above CCC, GTC Hungary has 18 months (grace period) to restore at least a B+ rating (otherwise, accelerated repayment within 90 days). If the rating drops to CCC or below (but not D/SD), a one-year remediation period applies to restore at least a B- rating. If not improved, or if it fails to reach B+ within six months after returning to B-, redemption must occur within 30 days, and ratings below B+ cannot persist for more than two years in total. If the rating reaches SD or D, GTC Hungary must redeem the bonds unless improved to at least C within 30 days. Such a development could adversely affect the company’s liquidity profile. Following the downgrade of the senior unsecured debt rating to B on 29 August 2025, GTC has entered the grace period. This means the company must ensure the debt rating returns to B+ before the grace period ends on 29 August 2027. If the debt rating does not return to B+ within the grace period, the company could face severe liquidity constraints and enter a default, unless it obtains refinancing that covers the early repayment of the outstanding bond amount or it proactively obtains an investor waiver related to the repayment acceleration.

Standalone credit assessment: B (revised from B-). As liquidity and refinancing risks remain the key determinant of the company’s credit profile, the standalone credit assessment remains capped at the level of the financial risk profile.

Supplementary rating drivers: credit-neutral (unchanged). Supplementary rating drivers have no impact on the issuer rating.

Outlook and rating sensitivities

The Positive Outlook reflects Scope’s view that GTC will successfully manage the refinancing of its residual secured bank facilities falling due until end-June 2026, which Scope considers manageable to address. The successful refinancing of the EUR 500m senior unsecured bond due in June 2026 has removed the most significant refinancing event among the 2026 maturities. Scope expects further stabilisation as GTC advances with its orderly refinancing activities, which would ease liquidity risks and help restore a more balanced debt maturity profile.

The upside scenario for the ratings and Outlook is:

1. Easing liquidity concerns through the successful extension or refinancing of secured debt maturities, restoring a normalised refinancing profile and better liquidity coverage.

The downside scenario for the ratings and Outlook is:

1. Worsening liquidity concerns driven by the lack of orderly progress to refinance or extend 2026 secured debt maturities.

Debt rating

GTC had EUR 643m in capital market debt outstanding as of end-June 2025. All issuances are irrevocably and unconditionally guaranteed by Globe Trade Centre S.A.

Scope has affirmed the B senior unsecured debt rating. Scope’s recovery analysis suggests an ‘excellent’ recovery for senior unsecured debt in a hypothetical default scenario in 2026, based on a distressed liquidation value of EUR 1.8bn. However, Scope aligns the debt rating with the issuer level, given the anticipated reduced pool of unencumbered assets following the secured bond issuance, the structural subordination to a higher share of secured debt and by GTC’s diminished secured lending headroom.

Environmental, social and governance (ESG) factors

Overall, ESG factors have no impact on this credit rating action.

All rating actions and rated entities

Globe Trade Centre S.A.

Issuer rating: B/Positive, upgrade

Senior unsecured debt rating: B, affirmation

GTC Real Estate Development Hungary Zrt.

Issuer rating: B/Positive, upgrade

Senior unsecured debt rating: B, affirmation

GTC Aurora Luxembourg S.A.

Senior unsecured (guaranteed) debt instrument rating (ISIN: XS2356039268): B, affirmation

*All credit metrics refer to Scope-adjusted figures.

Stress testing & cash flow analysis
No stress testing was performed. Scope Ratings performed its standard cash flow forecasting for the company.

Methodology
The methodologies used for these Credit Ratings and/or Outlooks, (European Real Estate Rating Methodology, 2 June 2025; General Corporate Rating Methodology, 14 February 2025), are available on https://scoperatings.com/governance-and-policies/rating-governance/methodologies.
Information on the meaning of each Credit Rating category, including definitions of default, recoveries, Outlooks and Under Review, can be viewed in ‘Rating Definitions – Credit Ratings, Ancillary and Other Services’, published on scoperatings.com/governance-and-policies/rating-governance/definitions-and-scales. Historical default rates of the entities rated by Scope Ratings can be viewed in the Credit Rating performance report at scoperatings.com/governance-and-policies/regulatory/eu-regulation. Also refer to the central platform (CEREP) of the European Securities and Markets Authority (ESMA): registers.esma.europa.eu/cerep-publication/. A comprehensive clarification of Scope Ratings’ definitions of default and Credit Rating notations can be found at scoperatings.com/governance-and-policies/rating-governance/definitions-and-scales. Guidance and information on how environmental, social or governance factors (ESG factors) are incorporated into the Credit Rating can be found in the respective sections of the methodologies or guidance documents provided on scoperatings.com/governance-and-policies/rating-governance/methodologies.
The Outlook indicates the most likely direction of the Credit Ratings if the Credit Ratings were to change within the next 12 to 18 months.

Solicitation, key sources and quality of information
The Rated Entity and/or its Related Third Parties participate in the Credit Rating process.
The following substantially material sources of information were used to prepare the Credit Ratings: public domain, the Rated Entity and Scope Ratings' internal sources.
Scope Ratings considers the quality of information available to Scope Ratings on the Rated Entity or instrument to be satisfactory. The information and data supporting these Credit Ratings originate from sources Scope Ratings considers to be reliable and accurate. Scope Ratings does not, however, independently verify the reliability and accuracy of the information and data.
Prior to the issuance of the Credit Rating action, the Rated Entity was given the opportunity to review the Credit Ratings and/or Outlooks and the principal grounds on which the Credit Ratings and/or Outlooks are based. Following that review, the Credit Ratings were not amended before being issued.

Regulatory disclosures
These Credit Ratings and/or Outlooks are issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0. The Credit Ratings and/or Outlooks are UK-endorsed.
Lead analyst: Fayçal Abdellouche, Senior Analyst
Person responsible for approval of the Credit Ratings: Thomas Faeh, Executive Director
The Credit Ratings/Outlooks assigned to Globe Trade Centre S.A. and GTC Real Estate Development Hungary Zrt. were first released by Scope Ratings on 12 November 2020. The Credit Ratings/Outlook were last updated on 29 August 2025.
The Credit Rating assigned to the senior unsecured (guaranteed) debt instrument issued by GTC Aurora Luxembourg S.A. was first released by Scope Ratings on 24 January 2022. The Credit Rating was last updated on 29 August 2025.

Potential conflicts
See scoperatings.com under Governance & Policies/Regulatory for a list of potential conflicts of interest disclosures related to the issuance of Credit Ratings, as well as a list of Ancillary Services and certain non-Credit Rating Agency services provided to Rated Entities and/or Related Third Parties.

Conditions of use/exclusion of liability
© 2025 Scope SE & Co. KGaA and all its subsidiaries including Scope Ratings GmbH, Scope Ratings UK Limited, Scope Fund Analysis GmbH, Scope Innovation Lab 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. Public Ratings are generally accessible to the public. Subscription Ratings and Private Ratings are confidential and may not be shared with any unauthorised third party.