July 1. 2020  - The rating reflects Nitrogenmuvek's solid profitability and cost position, but is
constrained by weak diversification, outlined by operating one production site.

The assigned issuer rating consists of a business risk profile of ‘B+’ and a financial risk profile of ‘BB+’. This reflects
Nitrogenmuvek’s position as the sole producer of nitrogen fertilisers in Hungary with an annual production capacity of
ammonia (497,000 tonnes), CAN (1,345,000 tonnes), among others.

Following the completion of Nitrogenmuvek’s EUR 320m capex programme in 2013 to 2019, Scope anticipates that its
credit profile will improve. This is supported by considerable tailwinds from a sharp drop in natural gas prices in Q1
2020, with prices for major products declining at a slower pace, combined with a jump in the production and delivery of
products. Despite Scope believes prices for nitrogen fertilizers to decrease in the remainder of 2020, Scope anticipates
Nitrogenmuvek’s EBITDA to be around HUF 29bn. The foreseen positive development in credit metrics should be
accompanied by a rise in Free cash flow generation. Liquidity is classified as ‘adequate’ in accordance with Scope’s
Corporate Rating Methodology.