The rating action reflects what is expected to have been a poor performance in 2023 and the uncertainty of the business plan for 2024 due to delays of purchase orders under the issuer's most significant framework contract with the Hungarian police.
Furthermore, the issuer's expected Scope-adjusted debt/EBITDA soared due to revenues and EBITDA falling more than 70% in H1 2023 compared to H1 2022, which could potentially cause a financial covenant breach at YE 2023, resulting in a debt acceleration of the senior unsecured bond
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