I need to analyze ENGIE's leverage trend for 2022 based on the financial data provided. Let me focus on key leverage metrics and how they changed from 2021 to 2022.

## Key Leverage Analysis

### Debt Levels
**Long-term Borrowings:**
- 2022: €30,458M
- 2023 (end of 2022): €28,083M
- Change: -€2,375M (decrease of ~7.8%)

**Current Borrowings:**
- 2022: €10,590M
- 2023 (end of 2022): €12,508M
- Change: +€1,918M (increase of ~18.1%)

**Total Borrowings:** €41,048M → €40,591M (slight decrease of ~1.1%)

### Equity Position
**Total Equity:**
- 2022: €41,980M
- 2023 (end of 2022): €39,285M
- Change: -€2,695M (decrease of ~6.4%)

**Equity attributable to owners:**
- 2022: €36,994M
- 2023 (end of 2022): €34,253M
- Change: -€2,741M (decrease of ~7.4%)

### Profitability and Coverage
**Net Income:**
- 2021: €3,758M
- 2022: €390M (massive decline of ~89.6%)

**Current Operating Income:**
- 2021: €6,116M
- 2022: €4,309M (decline of ~29.5%)

**Profit from continuing operations:**
- 2021: €3,678M
- 2022: -€1,793M (swung to loss)

### Cash Flow
**Operating Cash Flow:**
- 2021: €7,313M
- 2022: €8,586M (improvement of ~17.4%)

**Free Cash Flow (Operating - Capex):**
- 2021: €7,313M - €5,990M = €1,323M
- 2022: €8,586M - €6,379M = €2,207M (improvement)

### Key Leverage Ratios Estimate

**Debt/Equity:**
- 2021 year-end: ~0.98x (€41,048M/€41,980M)
- 2022 year-end: ~1.03x (€40,591M/€39,285M)

**Debt/EBITDA proxy (using operating income + D&A):**
- 2021: €41,048M / (€6,116M + €4,840M) = €41,048M / €10,956M = 3.75x
- 2022: €40,591M / (€4,309M + €5,187M) = €40,591M / €9,496M = 4.27x

**Interest Coverage:**
- Finance costs increased significantly: €2,061M → €3,700M (+79.5%)
- With lower operating income and higher finance costs, interest coverage deteriorated substantially

## Moody's Specific Adjustments Considerations

Moody's typically makes several adjustments:
1. **Pension liabilities**: Significant defined benefit remeasurements (€2,718M gain in 2022) - likely treated as debt-like
2. **Operating leases**: Not visible in this data but typically added to debt
3. **Hybrid securities**: Deeply subordinated perpetual notes (€3,767M → €3,393M) - typically given 50% equity credit
4. **Derivative positions**: Large derivative assets and liabilities - netted for leverage
5. **Provisions**: Non-current provisions increased €23,394M → €24,663M

### Critical Factors for Trend:

**Negative/Deteriorating Factors:**
- Net income collapsed from €3,758M to €390M
- Continuing operations swung to loss of €1,793M
- Equity declined by 6.4%
- Finance costs surged 79.5%
- Interest coverage weakened dramatically
- Debt/EBITDA increased from ~3.75x to ~4.27x
- Operating income declined 29.5%

**Positive/Improving Factors:**
- Total debt slightly decreased
- Operating cash flow improved
- Free cash flow improved
- Asset disposals generated significant cash (€6,728M from losing control of subsidiaries)

## Conclusion

While ENGIE generated strong cash flow and reduced total debt slightly, the **profitability collapse** and **equity erosion** are the dominant factors. The massive increase in finance costs, swing to loss in continuing operations, and 89% decline in net income indicate fundamental earnings weakness. 

For Moody's, the key concern is that **sustained earnings power has deteriorated significantly**, which directly impacts debt servicing capacity. The ratio of debt to sustainable earnings has worsened, and the company's financial flexibility is reduced despite some cash flow improvements.

The trend is **Deteriorating** due to:
- Collapse in reported earnings and continuing operations losses
- Weakened interest coverage
- Declining equity base
- Higher finance costs in a rising rate environment
- Reduced financial flexibility despite asset sales

<answer>Deteriorating</answer>