Scope Hamburg affirms BB issuer and issuance ratings of KÉSZ Holding Zrt.; outlook stable. The upcoming second issue of senior unsecured bonds was rated BB.
Scope Hamburg has affirmed the BB issuer credit rating of Hungarian construction company KÉSZ Group. The rating outlook remains unchanged at stable. At the same time the upcoming second series of senior unsecured bonds (HUF 10bn) was rated BB (issuance rating). The issuance ratings of KÉSZ Group’s senior unsecured bonds are derived from KÉSZ’ current issuer credit rating (BB), the bond’s structural ranking, reasonable creditor rights and adequate recovery expectations of > 50% in a hypothetical bond default scenario. KÉSZ’ current BB issuer credit rating is mainly driven by slightly increased business risks due to the inherent exposure to the cyclical and competitive construction industry and some notable concentration risks within the domestic construction sector and higher-risk CEE countries. Factors supporting the assessment mainly include KÉSZ’ leading and long-established market position, a history of robust working capital management, moderately strong credit metrics and an adequate financial flexibility.
KÉSZ Group is one of the largest construction companies in Hungary whose story started as a family business in 1982. Today, KÉSZ Group’s two main divisions are KÉSZ Engineering & Technologies (KÉSZ ET; 90% of revenues), which includes the entire construction business of the group and KÉSZ Business Solutions (KÉSZ BS; 10% of revenues). As of today, KÉSZ has implemented more than 3,100 projects and has 5 million m2 references in more than 12 countries. The group employs more than 1,500 people and reported revenues of HUF 117.2bn for 2020 (2019: HUF 97.2bn).
Scope Hamburg GmbH (formerly Euler Hermes Rating GmbH) was founded in 2001 as an independent European rating agency focusing on issuer and issuance ratings. Scope Hamburg GmbH is registered as a credit rating agency (CRA) in accordance with Regulation (EC) No 1060/2009 of the European Parliament and Council (as amended) and is considered as an external credit assessment institution (ECAI) by the European Banking Authority (EBA). Scope Hamburg GmbH is a subsidiary of Scope Group, the leading European provider of independent credit ratings, ESG analyses and fund analyses.
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