Scope Ratings incorporates the assumption of a HUF 36bn placement volume into its base case but believes that the announcement by Cordia International Zrt to increase the placement volume of its planned senior unsecured bond does not trigger a rating action. The updated bond volume represents no material change to the current rating case, no impact on the issuer’s business risk profile, and only negligible changes to the metrics used to determine the financial risk profile.

The company’s intended uses of the bond proceeds are also unchanged. These include financing of investments into real estate development and investment projects and developments, acquisitions (lands, portfolios of lands, business shares and immaterial goods etc.), working capital and potentially the refinancing of outstanding loans financing the above purposes (including senior loans, shareholder loans etc.).

Scope-adjusted EBITDA interest coverage is forecast at 2.3x for 2020, 2.2x for 2021 and 2.6x for 2022. The ratio of Scope-adjusted debt to EBITDA is still expected to range between 9x and 12x until 2022, in line with the existing rating case of a BB/Stable issuer rating. Please see updated rating report for details. 

The rating case (BB) for senior unsecured debt also remains intact, with the increased issuance volume resulting in only a slight deviation (about 1%) in the expected recovery rate in a hypothetical default scenario.

Download the updated rating report