In a separate statement, Scope said the rating action "reflects the lower-than-anticipated pressures on leverage and free operating cash flow in the context of the ambitious investment plan started in 2020".
It noted that Market Építő has expanded its growth strategy to invest in real estate projects and in a concrete plant. The ramp-up of the PreBeton concrete plant has allowed the company to source part of its raw materials internally, it added.
"The issuer rating is still supported by Market's leading position in the Hungarian construction sector and strong liquidity," Scope said.
"On the other hand, the rating remains constrained by Market's limited overall size, non-existent geographical diversification, and the concentrated backlog and business operations that result in a high sensitivity to business cycles," it added.
Market Építő made the disclosure because bonds it issued in the framework of the Bond Funding for Growth Scheme (BGS) of the National Bank of Hungary (MNB) are listed on the bourse.
The company issued a HUF 20 billion BGS bond in October 2019 and a HUF 22 bln bond a year later.
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