The decision to affirm the rating was underpinned by Scope’s positive assessment of Magyar Telekom’s overall financial performance, highlighting the company’s “improving financial risk profile and continued healthy business risk profile,” the telco said.
Scope Ratings particularly noted the company’s strong and stable market position in Hungary’s mobile and broadband sectors, where it holds significant market shares.
Additionally, the firm emphasized the benefits Magyar Telekom enjoys from the low cyclicality of the telecom industry, which offers greater resilience to economic fluctuations compared to other sectors, the company explained in its statement.
However, the revision of the outlook from positive to stable reflects Scope’s reassessment of broader conditions affecting the company’s operating environment.
“The change in outlook to stable reflects continued policy predictability concerns in Hungary,” the rating agency indicated
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