The rating action reflects higher-than-expected investments in 2024 and more moderate power prices, which are exerting downward pressure on the financial risk profile amid Haugaland Kraft's further growth ambitions.

The downgrade reflects deteriorating credit metrics, caused by weaker operating profitability amid more adverse market conditions, characterised by lower demand and increasing operating and personnel expenses.

The affirmation reflects Scope’s expectation that the sale of part of the business, BXI Kft., which currently operates the real estate brokerage business in Budapest, will have no impact on credit metrics.

The downgrade is based on increased reliance of its parent (GOPD Nyrt.) on dividends from SunDell, which are needed to service debt at the holding level.

The downgrade is based on the sustained deterioration of credit metrics and liquidity with increased reliance on dividend cash flows from subsidiary SunDell Estate Nyrt.

The affirmation reflects Tensio’s low business risks as a pure-play electricity distribution system operator. Credit metrics are expected to be sustained at moderate levels despite continued high capex.

The Outlook change reflects deteriorating credit metrics in 2023 and the expectation of a slow recovery, with risk that leverage will remain at or above 4x for a prolonged period.

Scope withdraws all ratings on Vasútvill Kft. because of insufficient data and information to continue the analysis underpinning the credit ratings.

Resilient operations in 2023, strong credit metrics and executed growth outside Hungary – which reduces reliance on a concentrated order book and partially mitigates the risk and impact of volatile cash generation – drive the affirmation.

The affirmation is driven by stable operating profitability and a strong order backlog, providing visibility on revenues until 2026, while weak diversification and limited size make the issuer vulnerable to adverse market developments.