The Negative Outlook reflects the Hungarian security systems provider’s continued suboptimal execution of its plans and delays in using bond proceeds for their intended purpose, both of which could lead to a deterioration in its financial standing.

The affirmation is driven by improved transparency about the company’s operating recovery and its return to a growth path that is primarily driven by its large contract expected to be closed with the Hungarian Police Headquarters.

The rating action reflects poor performance expected for 2023, uncertainty over 2024, and potential breach of financial covenant.

The ratings are driven primarily by the company’s low leverage and profitability and are somewhat constrained by its small size, low diversification and expansion-related execution risk.

The ratings are driven primarily by the company’s low leverage and profitability. The are somewhat constrained by its small size, low diversification, and expansion execution risks.