I need to estimate Moody's adjusted leverage trend for ENGIE in 2022 (the fiscal year ending January 1, 2023).

Moody's adjusted leverage is typically measured as Adjusted Debt / Adjusted EBITDA.

**Estimating EBITDA:**

First, let me calculate a proxy for EBITDA from the income statement:

For 2022 (FY ending Jan 1, 2023):
- Current Operating Income Including Operating MtM: 4,309M
- Add back Depreciation, Amortization and Provisions: 5,187M
- EBITDA proxy ≈ 9,496M

For 2021 (FY ending Jan 1, 2022):
- Current Operating Income Including Operating MtM: 6,116M
- Add back Depreciation, Amortization and Provisions: 4,840M
- EBITDA proxy ≈ 10,956M

From the cash flow statement, "Cash Flows From Used In Operations Before Changes In Working Capital" is another EBITDA proxy:
- 2022: 12,415M
- 2021: 9,807M

This is more favorable for 2022, but includes various non-cash adjustments.

**Estimating Debt:**

Gross debt:
- End of 2022 (Jan 1, 2023): Long-term borrowings 28,083M + Current borrowings 12,508M = 40,591M
- End of 2021 (Jan 1, 2022): Long-term borrowings 30,458M + Current borrowings 10,590M = 41,048M

Debt decreased slightly from ~41,048M to ~40,591M.

**Moody's adjustments** typically include:
- Adding pension/post-retirement obligations (part of noncurrent provisions)
- Adding operating lease obligations (already in PP&E under IFRS 16)
- Adjusting for hybrid securities (deeply subordinated perpetual notes get partial equity treatment)

Noncurrent provisions increased from 23,394M to 24,663M (includes nuclear decommissioning, pension obligations, etc.)

**Leverage calculation (simplified):**

Using the income statement EBITDA proxy:
- 2022: ~40,591M / ~9,496M ≈ 4.3x
- 2021: ~41,048M / ~10,956M ≈ 3.7x

This shows leverage increasing (deteriorating) from ~3.7x to ~4.3x.

**Additional considerations:**
- Profit from operations fell dramatically from 6,722M to 1,127M
- Net income fell from 3,758M to 390M
- Finance costs increased from 2,061M to 3,700M
- Tax expense other than income tax nearly doubled (1,479M to 3,380M) - reflecting windfall profit taxes in the energy sector
- Impairment charges increased significantly
- Total equity decreased from 41,980M to 39,285M
- Provisions (both current and non-current) increased

Even using the cash flow-based EBITDA measure:
- 2022: 40,591M / 12,415M ≈ 3.3x
- 2021: 41,048M / 9,807M ≈ 4.2x

This would show improvement. However, Moody's adjusted EBITDA typically excludes mark-to-market gains/losses on derivatives. The large MtM swing of -3,661M in 2022 vs +721M in 2021 distorts the cash flow measure.

The operating performance shows:
- Revenue grew enormously but so did purchases
- Current operating income actually declined significantly
- Higher interest costs, higher taxes, higher provisions
- The underlying operational leverage metrics deteriorated

Given the significant decline in current operating income, increased debt-servicing costs, higher provisions, decreased equity, and the overall challenging operating environment with windfall taxes, the leverage trend appears to be **deteriorating**.

<answer>Deteriorating</answer>