GTC Hungary amends bond terms after rating downgrade

Globe Trade Centre S.A. announced on September 23, 2025, that its subsidiary, GTC Hungary, has amended the terms and conditions of its GTC 2030/A and GTC 2031/A series bonds. This follows Scope Ratings' downgrade of GTC and GTC Hungary from B+ to B- on August 29, 2025. The amendments, approved by bondholders, primarily concern remediation periods related to rating deterioration.

The remediation period for bond ratings falling below B+ has been shortened from 24 months to 18 months. If the rating drops to CCC or lower (excluding D or SD), GTC Hungary now has a one-year remediation period to achieve a minimum B- rating, with an additional six months to improve to B+. This new mechanism replaces the previous covenant which required bond redemption within 90 days if the rating fell to CCC.

New time limitations have also been introduced for maintaining a deteriorated rating. A rating below B+ can be held for a maximum of two continuous years, unless it falls to SD or D, in which case a 30-day limit applies. Failure to improve the rating within the specified remediation periods obliges GTC Hungary to redeem the bonds within 30 days from the end of that period. These changes are effective from August 29, 2025.