Scope also upgraded the rating on a senior unsecured HUF 3.48bn bond Pannon-Work issued in the framework of the Bond Funding for Growth Scheme (BGS) of the National Bank of Hungary (MNB) in October 2020 to BB- from B+.
The agency said the rating action reflects Pannon-Work's acquisition of ten solar parks with a combined capacity of 5MW "with excellent cash flow generation potential", the acquisition of payroll services company HR-Face and "an increasing margin despite the pandemic".
"Pannon-Work’s business risk profile…is driven by its position as the fourth largest personnel service provider in Hungary operating in a very fragmented market as well as diversification into payroll services and renewables," Scope said.
"The company's business risk profile is constrained by weak geographical and client diversification," it added.