Scope Hamburg assigns a BB- to Infogroup Holding Kft. for its credit quality and sustainabilility. The rating is expected to remain stable over the next twelve months. Furthermore Scope Hamburg assigns a rating of BB to the issuance of the bond Infogroup 2031/A
The business risk of Infogroup Holding Kft. is slightly increased. The decisive factor for Scope Hamburg’s valuation is the in our view slightly increased strategic risk, which arises particularly from the focus on project development activities. Scope Hamburg takes a positive view of the planned further development of the company’s own property portfolio, which Scope Hamburg believe will improve the diversification profile in terms of regionality and tenant structure in the medium term.
The financial risk of Infogroup Holding Kft. is slightly increased. Scope Hamburg takes a positive view of the good capital structure and comfortable liquidity position, which currently covers more than one year’s total rent. Further reserves for financial flexibility exist in the form of numerous reserve plots, which could be divested if required. Rental income is highly stable thanks to long-term leases in conjunction with a vacancy rate that has been very low for several years, and nearly no rent losses. Profitability stands at a very satisfactory level in Scope Hamburg’s view with EBITDA margins of > 54 %. The bank borrowings exhibit an accumulation of maturities in 2026, which Scope Hamburg views as increasing risk. The planned bond issue of HUF 4.5 billion is intended to (re)finance an acquisition (share increase), the construction of a new warehouse and a bank loan. In Scope Hamburg’s view, risks to profitability exist from longer and higher vacancy rates and an appreciation of the Hungarian Forint against the Euro. In addition, development projects/acquisitions that are planned but not included in the business plan may lead to a weaker trend in the financial ratios than shown.
Scope Hamburg asses the issuance Infogroup 2031/A one notch higher then the issuer rating due to appropriate creditor protection an a satisfactory expected recovery rate for the bond holders.
Infogroup Holding Kft. was founded in 1990 as a family office, and originally focused on development projects for residential construction. The group has focused on the development of commercial real estate since 2000. The company ranks today as one of the larger national real estate developers in Hungary, having built more than 90,000 m² of industrial and logistics real estate as well as more than 25,000 m² of office space. Infogroup develops real estate mainly for its own portfolio, although it also provides project development as well as asset and facility management services for third parties.
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.
Further information on this rating can be found at www.scopehamburg.com.
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