The latest information on the rating, including rating reports and related methodologies, is available on this LINK.

Rating action

Scope Ratings GmbH (Scope) has assigned a B+ rating to the senior unsecured HUF 5.0bn bond (ISIN: HU0000361449) to be issued by Textura Zrt. The bond is guaranteed by the state-owned Hungarian Development Bank MFB Zrt. and issued under the MNB Bond Funding for Growth Scheme.

Rating rationale

Textura plans to issue a HUF 5.0bn bond guaranteed by the MNB Bond Funding for Growth Scheme with a fixed-rate coupon and a 10-year tenor. Amortisation will start after five years (in 2027) with an annual repayment of HUF 0.5bn and a remaining 50% bullet repayment in the final year (2032). HUF 3.5bn of the bond proceeds will be used to develop the plastic business line, in detail: HUF 1.35bn for the development of the production site, HUF 1.15bn for the purchase of new capsule manufacturing machines and HUF 1.0bn for the purchase of new pool production machines. HUF 1.0bn will be used to refinance the company’s current investment loan and the remaining HUF 0.5bn to finance working capital expansion.

The HUF 5.0bn senior unsecured bond will be 80% guaranteed by the MFB (rated by Scope at BBB+/Stable). In case of oversubscription of 10% (maximum allowed in the Bond Funding for Growth Scheme), the guarantee amount shall increase accordingly.

Scope has assigned a B+ debt rating to the senior unsecured bond issued by Textura Zrt. and guaranteed by MFB Zrt. Scope expects an ‘above-average’ recovery for this bond in a hypothetical default scenario based on a distressed liquidation value, resulting in a one-notch uplift above the issuer rating.

In Scope’s view, the final terms and conditions do not deviate materially from the indicative terms and conditions upon which the preliminary (P)B+ rating was based. Textura’s issuer rating of B/Stable is unaffected.

Stress testing & cash flow analysis
No stress testing was performed. Scope Ratings performed its standard cash flow forecasting for the company.

Methodology
The methodologies used for this Credit Rating, (Corporate Rating Methodology, 6 July 2021; Rating Methodology: Retail and Wholesale Corporates, 17 March 2021), are available on https://www.scoperatings.com/#!methodology/list.
Scope Ratings GmbH and Scope Ratings UK Limited apply the same methodologies/models and key rating assumptions for their credit rating services, while Scope Hamburg GmbH’s methodologies/models and key rating assumptions are different from those of Scope Ratings GmbH and Scope Ratings UK Limited.
Information on the meaning of each Credit Rating category, including definitions of default, recoveries, Outlooks and Under Review, can be viewed in ‘Rating Definitions – Credit Ratings, Ancillary and Other Services’, published on https://www.scoperatings.com/#!governance-and-policies/rating-scale. Historical default rates of the entities rated by Scope Ratings can be viewed in the Credit Rating performance report at https://www.scoperatings.com/#governance-and-policies/regulatory-EU. Also refer to the central platform (CEREP) of the European Securities and Markets Authority (ESMA): http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml. A comprehensive clarification of Scope Ratings’ definitions of default and Credit Rating notations can be found at https://www.scoperatings.com/#governance-and-policies/rating-scale. Guidance and information on how environmental, social or governance factors (ESG factors) are incorporated into the Credit Rating can be found in the respective sections of the methodologies or guidance documents provided on https://www.scoperatings.com/#!methodology/list.
The Outlook indicates the most likely direction of the Credit Rating if the Credit Rating was to change within the next 12 to 18 months.

Solicitation, key sources and quality of information
The Rated Entity and/or its Related Third Parties participated in the Credit Rating process.
The following substantially material sources of information were used to prepare the Credit Rating: public domain, the Rated Entity and Scope Ratings' internal sources.
Scope Ratings considers the quality of information available to Scope Ratings on the Rated Entity or instrument to be satisfactory. The information and data supporting the Credit Rating originate from sources Scope Ratings considers to be reliable and accurate. Scope Ratings does not, however, independently verify the reliability and accuracy of the information and data.
Prior to the issuance of the Credit Rating action, the Rated Entity was given the opportunity to review the Credit Rating and the principal grounds on which the Credit Rating are based. Following that review, the Credit Rating was not amended before being issued.

Regulatory disclosures
This Credit Rating is issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0. The Credit Rating is UK-endorsed.
Lead analyst: Nils Weinhold, Senior Analyst
Person responsible for approval of the Credit Rating: Henrik Blymke, Managing Director
The preliminary Credit Rating was first assigned by Scope Ratings on 3 February 2022. The final Credit Rating was first assigned by Scope Ratings on 21 February 2022.

Potential conflicts
See www.scoperatings.com under Governance & Policies/EU Regulation/Disclosures for a list of potential conflicts of interest related to the issuance of Credit Ratings.

Conditions of use/exclusion of liability
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