# Moody's Adjusted Leverage Trend Analysis for REN (2022)

## Key Metrics Calculation

To assess leverage trends, I'll calculate adjusted leverage ratios for both periods using available data:

### Total Debt (including current and noncurrent borrowings):
- **2023-01-01**: €638,944M + €1,695,362M = €2,334,306M
- **2022-01-01**: €375,221M + €2,390,852M = €2,766,073M

### Adjusted EBITDA Calculation:
Starting with Operating Profit and adding back D&A:
- **2022 (year ending 2023-01-01)**: €239,721M + €249,276M = **€489,997M**
- **2021 (year ending 2022-01-01)**: €218,863M + €241,940M = **€460,803M**

### Adjusted Leverage Ratio (Total Debt / Adjusted EBITDA):
- **2023-01-01**: €2,334,306M / €489,997M = **4.77x**
- **2022-01-01**: €2,766,073M / €460,803M = **6.00x**

## Trend Analysis

The adjusted leverage ratio improved significantly from 6.00x to 4.77x, a reduction of 1.23x or approximately 20.5%.

### Supporting Evidence:

1. **Debt Reduction**: Total debt decreased by €431.8M (-15.6%), from €2,766.1M to €2,334.3M
2. **EBITDA Growth**: Adjusted EBITDA increased by €29.2M (+6.3%), driven by:
   - Operating profit up 9.5% (€218.9M → €239.7M)
   - D&A up 2.7% (€241.9M → €249.3M)
3. **Multiple Compression**: The leverage multiple compressed from 6.00x to 4.77x

### Moody's Perspective:

Under Moody's rating methodology, a reduction in adjusted leverage of this magnitude represents material deleveraging. The combination of:
- Significant debt reduction (€432M)
- Positive EBITDA growth
- Improving leverage ratio trajectory

All point to improving financial metrics, which would support an improving credit trend from a leverage perspective.

<answer>Improving</answer>