**Step 1: Identify the relevant industry for "ENGIE"**

ENGIE is a global energy and services group, primarily operating in gas, electricity, and energy services. The facts indicate it is a *Société Anonyme* in France.
Based on its scale, integrated operations, and presence in regulated (networks) and unregulated (generation, supply) markets, it falls under the **Unregulated Power And Gas** methodology, with potential parts in **Regulated Utilities**. Given the data provided and the nature of its revenue, the dominant methodology applied for ratio adjustments is the Unregulated Power and Gas / general corporate methodology. We will use the general baseline formulas provided, as the specific adjustments for sector ratios are not detailed enough in the prompts for precise sector-specific re-calculations beyond the baseline provided.

We will proceed with the baseline formulas, noting key observations from the sector methodologies where relevant (e.g., volatility tables, but we focus on the calculation steps).

**Step 2: Estimate 2021 Adjusted_EBITDA**

We reconstruct EBITDA from the provided P&L items. The data is in EUR.

*Formula:*
Adjusted_EBITDA = EBITDA (reconstructed) + nonrecurring_losses - nonrecurring_gains

*2021 Data (in EUR):*
- Revenue: 57,866,000,000
- Purchases And Operating Derivatives: -38,861,000,000
- Employee Benefits Expense: -7,692,000,000
- Tax Expense Other Than Income Tax Expense: -1,479,000,000
- Other Income: 1,122,000,000
- Other Income/Expense from Subsidiaries: 1,107,000,000 (part of operating?)
- Other Non Recurring Items: -69,000,000 (expense)

Reconstructed EBITDA (simple approach):
Revenue
+ Other Income
- Purchases & Operating Derivatives
- Employee Benefits
- Tax Expense Other Than Income tax
= 57,866 + 1,122 - 38,861 - 7,692 - 1,479 = 10,956,000,000

Now, add back non-recurring expenses and subtract non-recurring income:
- Impairment Loss: 1,028,000,000 (expense)
- Restructuring Activities: 204,000,000 (expense)
- Other Non Recurring Items: -69,000,000 (expense)
- Other Income/Expense from Subsidiaries: 1,107,000,000 (gain)
Total non-recurring to add back: 1,028 + 204 + 69 - 1,107 = 194,000,000

Adjusted_EBITDA (2021) = 10,956,000,000 + 194,000,000 = 11,150,000,000 EUR

**Step 3: Estimate 2021 FFO**

*Formula:*
FFO = Adjusted_EBITDA - cash_interest - cash_taxes

*2021 Data:*
- Finance Costs: -2,061,000,000
- Finance Income: 711,000,000
- Income Tax Expense Continuing Operations: -1,695,000,000
- Adjustments for Income Tax Expense (from Cash Flow): 1,695,000,000 (same as P&L)
- Adjustments for Finance Income/Cost: -1,350,000,000 (Net Financial Loss)
- Income Taxes Paid (from Cash Flow): 603,000,000

Cash Interest Approximation: Net Finance Costs adjusted for non-cash items. We use Cash Flow data if possible.
Cash Interest Paid: 719,000,000 (from Financing activities)
Cash Interest Received: 52,000,000 (from Financing activities)
Net Cash Interest = 719 - 52 = 667,000,000

Cash Taxes Paid: 603,000,000

FFO (2021) = 11,150,000,000 - 667,000,000 - 603,000,000 = 9,880,000,000 EUR

**Step 4: Estimate 2021 Adjusted_Debt**

*Formula:*
Adjusted_Debt = (reported_debt + leases + pension_deficit + guarantees + hybrid_debt_portion + other_debt_like_items) - eligible_cash

*2021 Balance Sheet Data (as of 2022-01-01):*
- Long-term Borrowings: 30,458,000,000
- Current Borrowings: 10,590,000,000
- Cash and Cash Equivalents: 13,890,000,000
- Deeply Subordinated Perpetual Notes: 3,767,000,000 (treated as 50% equity, 50% debt per S&P guidelines typically, but as a baseline we treat 50% as debt).
- Pensions: Actuarial assumptions not needed if we just use provisions. We see Noncurrent Provisions: 23,394,000,000. Substantial portion is likely nuclear decommissioning (an asset retirement obligation), not a financial debt-like obligation. We will ignore broad provisions for leverage calculation in standard corporate approach, but note it. We assume standard leverage calc.
- Leases: Not explicitly itemized. Likely embedded. We assume 0 for simplicity, or part of borrowings.
- Guarantees: N/A in data.

Reported Debt = Long-term + Current = 30,458 + 10,590 = 41,048,000,000
Hybrids (50% debt) = 3,767 * 0.5 = 1,883,500,000

Adjusted_Debt (2021) = 41,048,000,000 + 1,883,500,000 - 13,890,000,000 = 29,041,500,000 EUR

**Step 5: Calculate 2021 Debt / EBITDA**

Ratio = 29,041,500,000 / 11,150,000,000 = 2.60x

**Step 6: Calculate 2021 FFO / Debt**

Ratio = 9,880,000,000 / 29,041,500,000 = 0.34 = 34.0%

**Step 7: Estimate 2022 Adjusted_EBITDA**

*2022 Data (in EUR):*
- Revenue: 93,865,000,000
- Purchases And Operating Derivatives: -74,535,000,000
- Employee Benefits Expense: -8,078,000,000
- Tax Expense Other Than: -3,380,000,000
- Other Income: 1,624,000,000
- Reconstructed EBITDA = 93,865 + 1,624 - 74,535 - 8,078 - 3,380 = 9,496,000,000

Non-recurring items:
- Impairment Loss: 2,774,000,000
- Restructuring: 230,000,000
- Other Non Recurring Items: -1,328,000,000 (expense)
- Other Income/Expense from Subsidiaries: 91,000,000 (gain)
Total add-backs = 2,774 + 230 + 1,328 - 91 = 4,241,000,000

Adjusted_EBITDA (2022) = 9,496,000,000 + 4,241,000,000 = 13,737,000,000 EUR

**Step 8: Estimate 2022 FFO**

*2022 Data:*
- Net Financial Loss: -3,003,000,000
- Income Tax Expense Continuing Ops: -83,000,000 (effectively a credit)
- Adjustments for Income Tax: -83,000,000
- Interest Paid (from CF): 822,000,000
- Interest Received on Cash: -194,000,000 (negative value means receipt?)
Let's check line: "Interest Received On Cash And Cash Equivalents" = -194,000,000. This means it is a negative expense (income).
Interest Paid (from CF): 822,000,000
Net Cash Interest = 822,000,000 - 194,000,000 = 628,000,000
Cash Taxes Paid = 1,504,000,000

FFO (2022) = 13,737,000,000 - 628,000,000 - 1,504,000,000 = 11,605,000,000 EUR

**Step 9: Estimate 2022 Adjusted_Debt**

*2022 Balance Sheet Data (as of 2023-01-01):*
- Long-term Borrowings: 28,083,000,000
- Current Borrowings: 12,508,000,000
- Cash and Cash Equivalents: 15,570,000,000
- Deeply Subordinated Perpetual Notes: 3,393,000,000

Reported Debt = 28,083 + 12,508 = 40,591,000,000
Hybrids (50%) = 3,393 * 0.5 = 1,696,500,000

Adjusted_Debt (2022) = 40,591,000,000 + 1,696,500,000 - 15,570,000,000 = 26,717,500,000 EUR

**Step 10: Calculate 2022 Debt / EBITDA**

Ratio = 26,717,500,000 / 13,737,000,000 = 1.95x

**Step 11: Calculate 2022 FFO / Debt**

Ratio = 11,605,000,000 / 26,717,500,000 = 0.434 = 43.4%

**Step 12: Classify Credit Trend**

*Signal 1: Leverage (Debt / EBITDA)*
2021: 2.60x
2022: 1.95x
Change = 1.95x - 2.60x = -0.65x

Threshold: ≤ -0.2x is Improving.
Signal 1 = Improving

*Signal 2: Coverage (FFO / Debt)*
2021: 0.340 (34.0%)
2022: 0.434 (43.4%)
Change = 0.434 - 0.340 = +0.094

Threshold: ≥ +0.03 is Improving.
Signal 2 = Improving

Both signals agree: **Improving**.

<answer>Improving</answer>