The rating benefits from: i) the company’s leading position as a real estate and financial services broker in Hungary and Poland; and ii) the improved diversification following the company’s acquisition of Hgroup, the second largest loan brokerage firm in Italy. Duna House Holding focuses on the retail segment and provides real estate and financial services, which ensures high customer granularity and adequate product diversification. The asset- and debt-light business model grants high interest cover and moderate leverage.

Negative rating factors include the company’s small size in its highly fragmented markets as well as its recent aggressive expansion policy which has carried execution and transaction risks. The volatile cash flow driven by its non-core activity as a real estate developer also constrains the rating.

This monitoring note does not constitute a rating action, nor does it indicate the likelihood of a credit rating action in the short term. On 14 November 2022, Scope affirmed the issuer rating at BB-/Stable and the senior unsecured debt rating at BB-. Click here for the corresponding rating action release. The latest information on the credit ratings in this monitoring note along with the associated rating history can be found on www.scoperatings.com.

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