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Rating action

Scope Ratings GmbH (Scope) has today affirmed the issuer rating of Hungarian auto spare parts distributor Unix Autó Kft. at BB/Stable. Scope has also affirmed the senior unsecured debt rating at BB.

The rating action also addresses the correction of previous calculation errors which materially affected credit metrics and its components. The errors related to the computation of Scope-adjusted debt* and EBITDA due to the inclusion of operating lease adjustments, and, consequently, funds from operations (FFO) and free operating cash flow (FOCF). Scope reviewed the ratings and concluded that the corrections of those calculation errors had no impact on the ratings.

The full list of rating actions and rated entities is at the end of this rating action release.

Key rating drivers

Business risk profile: BB (unchanged). Scope’s assessment reflects Unix Autó’s strong operating profitability in its core markets of Hungary and Romania, supported by a favorable market outlook. The rating, however, is constrained by the issuer’s limited geographical diversification.

Unix Autó is the leading auto spare parts distributor in Hungary, with a market share of around 35% and the broadest product portfolio in the country. The company reported revenues of EUR 298m in 2024, an increase of 9.6% YoY. While its dominance is clear in Hungary, Unix Autó also holds a fifth-place position in Romania and operates a single outlet in Slovakia.

Hungary remains the cornerstone of operations, contributing about 80% of sales, with Romania accounting for most of the balance. Growth potential in Hungary is limited by market saturation. Moreover, management does not plan major international expansion due to the high investment requirements and its current strategic priority of repaying the outstanding bond rather than pursuing capital-intensive growth.

On a positive note, the company benefits from strong supplier and sales channel diversification, sourcing from around 500 suppliers across different price tiers, which provides flexibility and minimizes dependency on any single partner. Its hybrid sales model further enhances resilience, with revenues split across physical retail shops (40%), proprietary B2B catalogue software used by repair garages (41%), and its online web shop (19%). This balanced structure reduces exposure to supply chain disruptions and limits reliance on any one distribution channel.

Profitability remains solid. The company generated an EBITDA margin of 13.8% in 2024 (slightly down from 14.5% in 2023), which Scope expects to stabilize around 12% over the medium term owing to increased competition and growth-related costs. In parallel, the EBITDA return on assets stood at 24% in 2024 and is expected to remain comfortably above 20% going forward, supported by EBITDA growth despite an increase in inventories. Profitability is underpinned by the successful roll-out of higher-margin private-label products, while competitive pricing and elevated inventory levels to safeguard product availability exert some pressure on margins.

Financial risk profile: A- (revised from BBB+). The improvement in Unix Autó’s financial risk profile reflects the company’s successful deleveraging following a period of heavy investment and Scope’s expectation that the company will be free of bank and bond debt by year-end 2026. Leverage is projected to strengthen further, approaching a debt/EBITDA of 1x, supported by both gross debt reduction and strong cash generation. Scope applies cash netting in its leverage calculation, as the cash accumulated is earmarked for debt repayment. Nevertheless, leverage could weaken again in the event of a sizeable new investment programme, such as an expansion of the private-label product line.

Cash flow cover is expected to remain positive, underpinned by robust operating cash flows and the absence of committed large-scale capex. However, as history has shown, cash flow coverage may become volatile if the company embarks on a new investment cycle.

EBITDA interest coverage is very strong, reaching 14x in 2024, reflecting prudent financial management, including the fixing of long-term borrowing costs, and continued EBITDA growth. Scope expects this strong buffer to remain intact and even improve further as gross debt declines, and interest expenses are reduced accordingly.

Liquidity: adequate (unchanged). Liquidity is adequate, supported by HUF 9.4bn of cash on hand at year-end 2024 and expected FOCF of over HUF 6.0bn in 2025, with additional flexibility from up to HUF 19.4bn of unsigned available short-term working capital facilities from banking partners if required. Scope believes existing cash sources and operating generation provide sufficient headroom to fully repay the HUF 12.0bn bond maturing in November 2026.

Scope notes that Unix Autó’s senior unsecured bond, issued under the Hungarian National Bank’s Bond Funding for Growth Scheme, has a covenant requiring the accelerated repayment of the outstanding nominal debt amount (HUF 12.0bn) if the debt rating of the bond stays below B+ for more than two years (grace period) or drops below B- (immediate accelerated repayment). Such a development could adversely affect the company’s liquidity profile. The rating headroom to entering the grace period is two notches. In addition to the rating deterioration covenant, bond covenants have a list of soft covenants including for a change of control. Banking covenants have been met with a high buffer as banks are ready to finance Unix Autó.

Scope therefore sees no material risk of the rating-related or leverage covenant being triggered.

Supplementary rating drivers: -1 notch (revised from credit neutral). The BB issuer rating incorporates a negative one-notch adjustment for peer context on its BB+ (revised from BB) standalone credit assessment. The issuer’s limited size and weak geographical diversification constrains its credit profile compared to relevant peers.

Outlook and rating sensitivities

The Stable Outlook reflects Scope’s expectation that Unix Autó will maintain solid credit metrics, including debt/EBITDA of below 1x, supported by mid single‑digit revenue growth driven mainly by pricing, resilient double‑digit margins, a conservative financial policy, and strong liquidity, ensuring full and timely debt repayment of its bond in 2026. The Stable Outlook also reflects continued constraints linked to the comparatively weaker business risk profile of the issuer.

The upside scenario for the ratings and Outlook is:

1. Improved business risk profile due to growing revenues and better geographical diversification (remote)

The downside scenario for the ratings and Outlook is:

1. Deterioration in financial risk profile exemplified by debt/EBITDA increasing above 3.5x (remote)

Debt ratings

Scope has affirmed the BB rating on senior unsecured debt issued by Unix Autó Kft., which includes the HUF 12.0bn bond (ISIN: HU0000359286). Scope expects an ‘excellent’ recovery for outstanding senior unsecured debt in a hypothetical default scenario at year-end 2026, based on a going-concern scenario. Although the instrument’s recovery potential could, in principle, support an uplift in its rating, Scope has refrained from such an adjustment given the company’s cash flow volatility stemming from its concentration in Hungary, as well as the instability of its capital structure under a default scenario.

 In November 2019, Unix Autó Kft. issued a HUF 12.0bn senior unsecured bond (ISIN: HU0000359286) through the Hungarian Central Bank’s Bond Funding for Growth Scheme. The bond proceeds were used for a new automated warehouse and the partial repayment of supplier balances. The bond has a tenor of seven years and a fixed coupon of 4.0%. The bond has a bullet repayment at maturity in November 2026.

Environmental, social and governance (ESG) factors

Overall, ESG factors have no impact on this credit rating action.

Unix Autó is investing in energy efficiency and energy transformation. The company also has an adequate governance structure with strategic decisions taken by the owner-CEO. While the automotive sector remains among the highest polluters, it is becoming greener with the growth of electric cars and the recycling of used parts and oils, mainly through governmental concession operators.

All rating actions and rated entities

Issuer rating: BB/Stable, affirmation

Senior unsecured debt rating: BB, affirmation

*All credit metrics refer to Scope-adjusted figures.

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 these Credit Ratings and/or Outlook, (General Corporate Rating Methodology, 14 February 2025; Retail and Wholesale Rating Methodology, 25 June 2025), are available on scoperatings.com/governance-and-policies/rating-governance/methodologies.
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 scoperatings.com/governance-and-policies/rating-governance/definitions-and-scales. Historical default rates of the entities rated by Scope Ratings can be viewed in the Credit Rating performance report at scoperatings.com/governance-and-policies/regulatory/eu-regulation. Also refer to the central platform (CEREP) of the European Securities and Markets Authority (ESMA):registers.esma.europa.eu/cerep-publication/. A comprehensive clarification of Scope Ratings’ definitions of default and Credit Rating notations can be found at scoperatings.com/governance-and-policies/rating-governance/definitions-and-scales. 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 scoperatings.com/governance-and-policies/rating-governance/methodologies.
The Outlook indicates the most likely direction of the Credit Ratings if the Credit Ratings were to change within the next 12 to 18 months.

Solicitation, key sources and quality of information
The Credit Ratings were not requested by the Rated Entity or its Related Third Parties. The Credit Rating process was conducted:
With the Rated Entity or Related Third Party participation       YES
With access to internal documents                                          YES
With access to management                                                    YES
The following substantially material sources of information were used to prepare the Credit Ratings: 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 these Credit Ratings 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 Ratings and/or Outlook and the principal grounds on which the Credit Ratings and/or Outlook are based. Following that review, the Credit Ratings and/or Outlook were not amended before being issued.

Regulatory disclosures
These Credit Ratings and/or Outlook are issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0. The Credit Ratings and/or Outlook are UK-endorsed.
Lead analyst: Michel Angelo Bove, Director
Person responsible for approval of the Credit Ratings: Philipp Wass, Managing Director
The Credit Ratings/Outlook were first released by Scope Ratings on 27 August 2019. The Credit Ratings/Outlook were last updated on 24 September 2024.

Potential conflicts
See scoperatings.com under Governance & Policies/Regulatory for a list of potential conflicts of interest disclosures related to the issuance of Credit Ratings, as well as a list of Ancillary Services and certain non-Credit Rating Agency services provided to Rated Entities and/or Related Third Parties.

Conditions of use / exclusion of liability
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