The B+ issuer credit rating is mainly driven by Trans-Sped’s operations in the transportation and logistics sector which we assess as highly cyclical and highly competitive with low barriers to entry, low profit margins and a highly fragmented landscape. Due to the asset intense operations, Trans-Sped is subject of rather low capital returns and slightly increased leverage ratios. Nevertheless we value Trans-Sped’s track-record of positive, yet rather weak, earnings and the overall adequate capital structure. The rating outlook remains stable.
The B+ issuance rating for Trans-Sped’s 2020/30 senior unsecured bonds with a total nominal value of HUF 5.0bn is derived from Trans-Sped’s current issuer credit rating (B+), the bond’s structural ranking, reasonable creditor rights and adequate recovery expectations in a hypothetical bond default scenario.
Trans-Sped Kft. is a family-owned and family-managed group of companies engaged in the Transport & Logistics sector since 1990. Based in Debrecen, Trans-Sped is among the top Hungarian players offering a wide range of services ranging from transportation and freight-forwarding to modern warehousing and production logistic activities with value add services like (re)packaging, storing, labelling, assembling, quality control, returned goods handling, export/import customs administration etc. The group operates c. 185.000 m² of indoor warehouse capacity with c. 200 forklift trucks and cranes, a heavy duty vehicle fleet of 480 (thereof c. 250 subcontracted) and currently 16 regional centres across Hungary. Furthermore the group engages in technical maintenance tasks, warehouse construction projects and industrial park operations at its own 28 hectare industrial park site. At the end of 2020, the company reported consolidated revenues of HUF 21,210 million and a workforce of 717.
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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