I'll work through this step-by-step.

## Step 1: Identify the relevant industry

Bouygues is a diversified French conglomerate with operations in construction (Bouygues Construction), real estate (Bouygues Immobilier), roads (Colas), media (TF1), and telecoms (Bouygues Telecom). It doesn't fit neatly into any of the specific industry methodologies provided (Regulated Utilities, Oil & Gas E&P, Unregulated Power & Gas, or Transportation Infrastructure). I'll apply the **general corporate baseline formulas**.

Note: The massive increase in assets from 2021 to 2022 (goodwill nearly doubled from €7.4B to €12.6B) suggests a major acquisition in 2022 — this was the acquisition of Equans (energy & services business) completed in late 2022.

## Step 2: Estimate 2021 Adjusted_EBITDA

**2021 EBITDA (reconstructed):**
- Operating profit (2021): €1,733M
- Add back D&A: €2,065M
- Add back ROU depreciation: €353M
- Add back impairment/provisions: €405M
- Less reversal of provisions: -€444M

EBITDA = 1,733 + 2,065 + 353 + 405 - 444 = €4,112M

Wait, let me reconsider. The reported items already include impairment and provision expenses within operating profit. Let me use:

EBITDA = Operating profit + D&A + ROU depreciation
EBITDA = 1,733 + 2,065 + 353 = €4,151M

**S&P Adjustments for 2021:**
- Lease adjustment: Add back ROU depreciation (already included) and add lease interest (€52M) — under S&P, operating leases are capitalized, so EBITDA adds back the full lease payment. Since D&A of ROU (€353M) + lease interest (€62M for 2022, €52M for 2021) = total lease cost. S&P adds lease depreciation back to get to EBITDA, then the lease interest is part of the EBITDA. Actually, S&P treats leases as debt-like, so Adjusted EBITDA includes the lease interest expense back.

S&P Adjusted EBITDA = EBITDA + lease interest = 4,151 + 52 = €4,203M

**Non-recurring adjustments:**
- Non-recurring income (2021): €115M → subtract
- Non-recurring expense (2021): €75M → add back

Net non-recurring: +75 - 115 = -€40M

Adjusted_EBITDA (2021) = 4,203 - 40 = **€4,163M**

Actually, let me reconsider. The operating profit already includes non-recurring items. For S&P purposes, I should normalize:

Adjusted_EBITDA (2021) ≈ €4,163M

## Step 3: Estimate 2021 FFO

**Cash interest (2021):**
- Interest expense: €176M
- Interest income: -€21M
- Net interest (cost of net debt): €155M
- Lease interest: €52M (excluded from FFO calculation as it's a financing cost under S&P)

Cash interest = €155 + €52 = €207M

**Cash taxes (2021):** €397M (from cash flow statement)

FFO (2021) = 4,163 - 207 - 397 = **€3,559M**

## Step 4: Estimate 2021 Adjusted_Debt

**2021 Balance Sheet (as of Jan 1, 2022):**
- Long-term borrowings: €5,805M
- Current borrowings: €1,324M
- Bank overdrafts: €351M
- Total reported debt: €7,480M

**Lease liabilities:**
- Non-current: €1,473M
- Current: €362M
- Total leases: €1,835M

**Pension deficit (from provisions):**
- Non-current provisions: €2,093M
- Estimate pension portion: Bouygues typically has ~€1B in pension obligations. I'll estimate ~€1,000M as pension-related.

**Cash adjustment:**
- Cash & equivalents: €6,501M
- S&P typically allows netting of a portion of cash. For diversified industrials, S&P might net surplus cash. Let's assume S&P nets most cash but keeps some operating cash (~€1,500M operating cash for a company this size).
- Eligible cash: €6,501M - €1,500M = €5,001M

Adjusted_Debt (2021) = 7,480 + 1,835 + 1,000 - 5,001 = **€5,314M**

## Step 5: 2021 Adjusted_Debt / Adjusted_EBITDA

= 5,314 / 4,163 = **1.28x**

## Step 6: 2021 FFO / Adjusted_Debt

= 3,559 / 5,314 = **0.670 (67.0%)**

## Step 7: Estimate 2022 Adjusted_EBITDA

**2022 EBITDA (reconstructed):**
- Operating profit (2022): €1,872M
- D&A: €2,228M
- ROU depreciation: €446M

EBITDA = 1,872 + 2,228 + 446 = €4,546M

**Lease interest:** €62M
**Non-recurring:** +183 - 93 = +€90M (net add-back)

Adjusted_EBITDA (2022) = 4,546 + 62 + 90 = **€4,698M**

## Step 8: Estimate 2022 FFO

**Cash interest (2022):**
- Cost of net debt: €198M
- Lease interest: €62M
- Total: €260M

**Cash taxes (2022):** €518M

FFO (2022) = 4,698 - 260 - 518 = **€3,920M**

## Step 9: Estimate 2022 Adjusted_Debt

**End of 2022 (Jan 1, 2023):**
- Long-term borrowings: €11,586M
- Current borrowings: €1,361M
- Bank overdrafts: €418M
- Total reported debt: €13,365M

**Lease liabilities:**
- Non-current: €2,107M
- Current: €498M
- Total: €2,605M

**Pension (estimate):** ~€1,100M (provisions increased to €2,250M non-current)

**Cash:**
- Cash: €5,736M
- Operating cash reserve: ~€2,000M (larger company post-Equans)
- Eligible cash: €5,736M - €2,000M = €3,736M

Adjusted_Debt (2022) = 13,365 + 2,605 + 1,100 - 3,736 = **€13,334M**

## Step 10: 2022 Adjusted_Debt / Adjusted_EBITDA

= 13,334 / 4,698 = **2.84x**

## Step 11: 2022 FFO / Adjusted_Debt

= 3,920 / 13,334 = **0.294 (29.4%)**

## Step 12: Classify the credit trend

**Signal 1: Leverage change**
= 2.84x - 1.28x = **+1.56x** → ≥ +0.2x → **Deteriorating**

**Signal 2: FFO/Debt change**
= 0.294 - 0.670 = **-0.376** → ≤ -0.03 → **Deteriorating**

Both signals clearly agree: **Deteriorating**

This makes sense given the massive debt-funded Equans acquisition, which nearly doubled goodwill and significantly increased leverage.

<answer>Deteriorating</answer>