I need to analyze ERG S.p.A.'s leverage trend for 2022 based on the financial data provided. Let me calculate key leverage metrics.

First, let me identify the relevant figures for leverage analysis:

**2022 (year ending 2023-01-01):**
- Total Assets: 5,226,385,000 EUR
- Total Liabilities: 3,171,703,000 EUR
- Equity: 2,054,682,000 EUR
- Debt-related items:
  - Other Noncurrent Financial Liabilities: 1,751,255,000 EUR
  - Current Financial Liabilities at FVTPL: 76,644,000 EUR
  - Other Current Financial Liabilities: 389,716,000 EUR
  - Noncurrent Lease Liabilities: 150,955,000 EUR
  - Current Lease Liabilities: 6,362,000 EUR

**2021 (year ending 2022-01-01):**
- Total Assets: 6,003,844,000 EUR
- Total Liabilities: 4,435,222,000 EUR
- Equity: 1,568,622,000 EUR
- Debt-related items:
  - Other Noncurrent Financial Liabilities: 2,064,088,000 EUR
  - Current Financial Liabilities at FVTPL: 170,857,000 EUR
  - Other Current Financial Liabilities: 1,342,688,000 EUR
  - Noncurrent Lease Liabilities: 122,663,000 EUR
  - Current Lease Liabilities: 6,282,000 EUR

Let me calculate total debt (financial liabilities + lease liabilities):

**2022 Total Debt:**
1,751,255,000 + 76,644,000 + 389,716,000 + 150,955,000 + 6,362,000 = 2,374,932,000 EUR

**2021 Total Debt:**
2,064,088,000 + 170,857,000 + 1,342,688,000 + 122,663,000 + 6,282,000 = 3,706,578,000 EUR

**Debt/Equity Ratio:**
- 2022: 2,374,932,000 / 2,054,682,000 = 1.16x
- 2021: 3,706,578,000 / 1,568,622,000 = 2.36x

**Debt/Total Assets:**
- 2022: 2,374,932,000 / 5,226,385,000 = 45.4%
- 2021: 3,706,578,000 / 6,003,844,000 = 61.7%

**Total Liabilities/Equity:**
- 2022: 3,171,703,000 / 2,054,682,000 = 1.54x
- 2021: 4,435,222,000 / 1,568,622,000 = 2.83x

Key observations:
1. Total debt decreased significantly from 3,707M to 2,375M EUR (down ~36%)
2. Debt-to-equity improved dramatically from 2.36x to 1.16x
3. Total liabilities decreased from 4,435M to 3,172M EUR
4. Equity increased from 1,569M to 2,055M EUR (up ~31%)

The significant deleveraging is driven by:
- Reduction in current borrowings/other current financial liabilities (from 1,343M to 390M)
- Reduction in noncurrent financial liabilities (from 2,064M to 1,751M)
- Strong equity growth from retained earnings (378.9M profit attributable to owners)
- Disposal of subsidiaries/businesses (1,265M cash inflow from losing control of subsidiaries)

However, I need to consider Moody's adjustments. They typically adjust for:
- Pension deficits (not significant here)
- Operating leases (already included)
- Hybrid instruments (not visible)
- Unconsolidated subsidiaries/joint ventures

The cash flow statement shows major divestment activity (1,265M from losing control of subsidiaries), which is non-recurring. The 2022 profit includes 294M from discontinued operations, suggesting significant portfolio restructuring.

Looking at the operating performance:
- EBITDA improved from 396.7M to 499.4M (+26%)
- Operating profit improved from 168.4M to 220.8M
- However, finance costs remain significant

For Moody's adjusted leverage, they would focus on sustainable debt levels. The reduction in debt is partly due to asset sales (discontinued operations). The 2022 balance sheet shows "Noncurrent Assets Or Disposal Groups Classified As Held For Sale" at 226M (down from 776M), indicating ongoing disposals.

The leverage metrics show clear improvement on a reported basis. However, the quality of this improvement matters - it's driven by asset sales rather than organic debt repayment from operations. The continuing operations show:
- Operating cash flow: 502.5M (vs -40.8M prior year)
- But investing cash flow includes 1,265M from disposals

Moody's would likely view the deleveraging positively but may be concerned about sustainability if asset sales are one-time. Given the significant reduction in absolute debt and leverage ratios, and improved EBITDA generation, the trend is improving.

The equity increase is also genuine (retained earnings), and the company has moved from negative operating cash flow to strongly positive. The discontinued operations suggest portfolio optimization rather than distress.

<answer>Improving</answer>