Corporate Credit Rating for BIOVALLEY INVESTMENTS PARTNER S.P.A.: B1 (First Issuance)
modefinance published the Solicited Corporate Credit Rating of BIOVALLEY INVESTMENTS PARTNER S.P.A. on the website and the rating assigned to the entity is B1 (first issuance). The analysis revealed it is an adequate company with average capability of repaying financial obligations and it is little affected by adverse economic scenarios.
The Company BIOVALLEY INVESTMENTS PARTNER S.P.A. (abbreviated to “BIP S.P.A.”, or hereinafter referred to as the “Company”) is an enterprise part of an integrated industrial group, founded in 2016 and specialized in marketing and sale of products and services. In particular, the Group invests in the BioHighTech sector (BioMed, BioTech and Pharma, BioICT), in innovative companies operating in life sciences, medicine and digital markets.
Key Rating Assumption
The company BIOVALLEY INVESTMENTS PARTNER S.P.A. presents a “sufficient” economic and financial situation, characterized by a strong capitalization and an adequate financial balance. However, profitability ratios are still low. In Bank of Italy’s Central Credit Register, no episodes linked to disputes or serious anomalies were registered throughout the period under review.
The Company’s administrative body has a collegial form and is made up of various figures external to the owners, with control being carried out by a collegial, as well. The corporate structure is rather articulated, although the Company has a consolidation perimeter within which fall four other companies. The Company also has several minority shareholdings.
The Company operates within an integrated industrial group specializing in marketing and sale of products and services relating to the field of BioHighTech. The Company operates by investing in innovative companies active in its related markets, as well. In November 2019, The Company was recognized as “Innovative SME” by the Ministry of Economic Development. No black records have been found against the Company, its shareholders or members of the administrative body.
The Company has a very high ranking in terms of size (91/100), describing it as one of the largest companies in the analysis sample in terms of turnover. As far as solvency is concerned, the Company’s position is very high (81/100), as well, due to the solid capitalization of the Company. Eventually, with regard to profitability, the Company’s position is well below the industry median(10/100), making it one of the least profitable companies in the analysis sample. The peer group shows a constant reduction in leverage and financial leverage throughout the period under review and can thus be considered good. The peer group shows an increasing current ratio and quick ratio throughout the period under examination, above the unit and can thus be considered adequate. The peer group shows an increasing ROE during 2020, such as to be considered adequate.
The macroeconomic picture of Italy shows how the recovery in 2021 was in line with forecast data, with sustained economic growth that should continue in the coming years. Political stability and the correct use of the funds made available by the European community are of fundamental importance to maintain positive signals in 2022 as well.
Sensitivity Analysis
In the following table, the addressing factors, actions or events that could lead to an upgrade or a downgrade are summarized:
Important
The present Corporate Credit rating is issued by modefinance under EU Regulation N. 1060/2009 and following amendments.
The present rating is solicited, and based on both private and public information. The rated entity and/or related third parties have provided all private information used. modefinance had access to some accounts and other relevant internal documents of the rated entity and/or related third parties. Solicited and unsolicited ratings issued by modefinance are of comparable quality, as the solicitation status has no effect on methodologies used. More comprehensive information on modefinance Corporate Credit Ratings are available here.
The present Corporate Credit Rating is issued on MORE Methodology 2.0 and Rating Methodology 1.0. A comprehensive description of both methodologies, as well as information on modefinance Rating Scale and Mappings, is available here. For information on historical default rates of modefinance Corporate Credit Ratings please refer to ESMA Central Repository and ESMA European Rating Platform.
modefinance refers to default as a company under bankruptcy, or under liquidation status, or under administration or for which missed payments on a financial obligation are officially recorded.
The quality of the information available on the rated entity and used to determine the present rating was judged by modefinance as satisfactory. Please note that modefinance does not perform any audit activity and is not in a position to guarantee the accuracy of any information used and/or reported in the present document. As such, modefinance can accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect.
The present credit rating was notified to the rated entity in order to identify potential factual errors, as prescribed by the CRA Regulation.
No amendments were applied after the notification process.
The rated entity is not a buyer of ancillary services provided by modefinance.
The rating action issued by modefinance was performed independently. The analysts, members of the rating team involved in the process, modefinance Srl and its members and shareholders do not have any conflicts of interest in relation to the Rated Entity and/or Related Third Parties. If in the future a potential conflict of interest is identified in relation to the persons reported above, modefinance Ratings will provide the appropriate information and if necessary the rating will be withdrawn.
The present Credit Rating is an opinion of the general creditworthiness that modefinance issues on the rated entity, and should be relied upon to a limited degree. The issued rating is subject to an ongoing monitoring until withdrawal.
Contacts
Head Analyst – Christian Raimondo (Rating Analyst)
christian.raimondo@modefinance.com
+39 040 3756740
Assistant Analyst – Stefania Latin (Rating Analyst)
stefania.latin@modefinance.com
+39 040 3756740
Responsible for Rating Approval – Pinar Dilek
pinar.dilek@modefinance.com
+39 040 3756740