Equity 19 July 2021, 3:46pm

Scope affirms AutoWallis' B+ issuer rating, revises outlook to stable

Portfolio

Scope Ratings GmbH (Scope) has affirmed its B+ issuer rating on Hungary’s AutoWallis and has revised the outlook to stable from positive due to the extra risks of its impending HUF 6 billion bond issue. Scope has also affirmed its B+ rating on senior unsecured debt, AutoWallis said in a statement on the Budapest Stock Exchange.

Following its initial rating in 2019, Scope has now revised the issuer and debt ratings of AutoWallis, affirming B+ in both categories.

“The change in outlook to stable from positive reflects the shift in financial policy as indicated by plans to issue a second bond and use the proceeds to finance transactions,” Scope Ratings said.

This means AutoWallis continues to meet the National Bank of Hungary’ (MNB) requireents for participation in its Bond Funding for Growth Scheme. The planned HUF 6 bn private placement will be prepared and organised by Magyar Takarékszövetkezeti Bank as investment service provider.

AutoWallis will used the proceeds of the ten-year bonds, which carry a fixed 3% coupon, to finance its growth targets, in line with it recently adopted Green Financing Framework.

The company’s first HUF 3 bn bond issue under the BFGS programme last April was oversubcribed.

AutoWallis shares have gained 18.8% this year.