Step 1: Identify the relevant industry
Ørsted A/S is a major renewable energy company. While it has some regulated utility operations, it primarily operates in unregulated power and gas (renewables) and has significant oil and gas exploration and production activities. Given its merchant exposure, risk profile, and the nature of its 2022 financials (with massive fair value changes on derivatives and significant asset disposals), the "Unregulated Power And Gas" and "Oil And Gas Exploration And Production" methodologies are the most relevant. The standard corporate methodology adjustments apply to baseline formulas where industry specifics aren't detailed in the text provided.

Step 2: Estimate 2021 Adjusted_EBITDA
Formula: Adjusted_EBITDA = EBITDA (reported) + adjustment_leases + nonrecurring_losses - nonrecurring_gains ± other_normalization_adjustments
- Reported EBITDA (Profit Loss From Operating Activities Before Interest Taxes Depreciation And Amortisation Expense) 2021: 24,296,000,000 DKK
- Adjustment for leases (8x rent): Ørsted typically has operating leases. We will assume a standard 8x adjustment if rent is not separable. Since specific rent isn't listed, we will use the reported EBITDA as the base without adding a lease estimate due to lack of data, recognizing standard methodology would add this.
- Nonrecurring items: "Gains Losses On Disposals Of Investments" = -742,000,000 DKK (a loss, so we add it back to normalize). "Other Expense By Nature" = 386,000,000 DKK (add back to normalize).
- Adjusted_EBITDA = 24,296 + 742 + 386 = 25,424,000,000 DKK.

Step 3: Estimate 2021 FFO
Formula: FFO = Adjusted_EBITDA - cash_interest - cash_taxes
- Cash interest 2021: "Interest Paid Classified As Operating Activities" = 3,985,000,000 DKK
- Cash taxes 2021: "Income Taxes Paid Classified As Operating Activities" = 1,380,000,000 DKK
- FFO = 25,424 - 3,985 - 1,380 = 20,059,000,000 DKK.

Step 4: Estimate 2021 Adjusted_Debt
Formula: Adjusted_Debt = (reported_debt + leases + pension_deficit + guarantees + hybrid_debt_portion + other_debt_like_items) - eligible_cash
- Reported debt 2021: "Longterm Borrowings" (31,502) + "Shortterm Borrowings" (19,493) = 51,022,000,000 DKK (using 2022-01-01 balances).
- Hybrid debt: 17,984,000,000 DKK. S&P typically treats 50% of hybrid capital as debt if it has step-ups and is subordinated. Assuming 50% equity treatment is standard, but for conservative baseline, we often see partial or full inclusion depending on the step-up. We will treat the full amount as equity or use standard 50% depending on typical treatment. However, S&P usually adds 50% of hybrids. Let's include 50%: 8,992,000,000 DKK.
- Leases: "Noncurrent Lease Liabilities" (6,812) + "Current Lease Liabilities" (720) = 7,532,000,000 DKK.
- Eligible cash 2021: "Cash" (8,624,000,000 DKK).
- Adjusted_Debt = 51,022 (debt) + 8,992 (50% hybrid) + 7,532 (leases) - 8,624 (cash) = 58,922,000,000 DKK.

Step 5: Calculate 2021 Adjusted_Debt / Adjusted_EBITDA
- Ratio = 58,922 / 25,424 = 2.32x

Step 6: Calculate 2021 FFO / Adjusted_Debt
- Ratio = 20,059 / 58,922 = 0.340 (34.0%)

Step 7: Estimate 2022 Adjusted_EBITDA
- Reported EBITDA 2022: 32,057,000,000 DKK
- Nonrecurring items: "Gains Losses On Disposals Of Investments" = +331,000,000 DKK (a gain, so we subtract it to normalize). "Other Expense By Nature" = 4,963,000,000 DKK (an expense, add it back to normalize).
- Adjusted_EBITDA = 32,057 - 331 + 4,963 = 36,689,000,000 DKK.

Step 8: Estimate 2022 FFO
- Cash interest 2022: "Interest Paid Classified As Operating Activities" = 8,548,000,000 DKK
- Cash taxes 2022: "Income Taxes Paid Classified As Operating Activities" = 1,263,000,000 DKK
- FFO = 36,689 - 8,548 - 1,263 = 26,878,000,000 DKK.

Step 9: Estimate 2022 Adjusted_Debt
- Reported debt 2022: "Longterm Borrowings" (60,451) + "Shortterm Borrowings" (2,830) = 63,281,000,000 DKK (using 2023-01-01 balances).
- Hybrid debt: 19,793,000,000 DKK. 50% = 9,896,500,000 DKK.
- Leases: "Noncurrent Lease Liabilities" (7,697) + "Current Lease Liabilities" (569) = 8,266,000,000 DKK.
- Eligible cash 2022: "Cash" (16,178,000,000 DKK).
- Adjusted_Debt = 63,281 + 9,896.5 + 8,266 - 16,178 = 65,265,500,000 DKK.

Step 10: Calculate 2022 Adjusted_Debt / Adjusted_EBITDA
- Ratio = 65,265.5 / 36,689 = 1.78x

Step 11: Calculate 2022 FFO / Adjusted_Debt
- Ratio = 26,878 / 65,265.5 = 0.412 (41.2%)

Step 12: Classify the year-on-year credit trend
- Signal 1 (Leverage): Change in Adjusted_Debt / Adjusted_EBITDA = 1.78x - 2.32x = -0.54x. This is ≤ -0.2x, so it is "Improving".
- Signal 2 (Cash-flow coverage): Change in FFO / Adjusted_Debt = 0.412 - 0.340 = +0.072. This is ≥ +0.03, so it is "Improving".
- Both signals agree, indicating an "Improving" trend. Leverage decreased significantly due to EBITDA growth outpacing debt increases, and cash flow coverage improved notably.

<answer>Improving</answer>