Category: Rating Agency

modeFinance Corporate Credit Rating for BARILLA HOLDING SPA : B1+ (First Issuance)

modeFinance Corporate Credit Rating for BARILLA HOLDING SPA : B1+ (First Issuance)

modeFinance published on the website (http://cra.modefinance.com/en/rated-companies) the Corporate Credit Rating (first issuance) of BARILLA HOLDING SPA and the rating assigned to the entity is B1+. The company is adequately capable to meet its financial commitments, even though it might be affected by adverse changings of the macroeconomic environment.

The reasons that have driven this decision are:

- The company has shown a good situation over the considered period, with a strong position in solvency and good results in profitability.

- The company has a very low financial indebtedness over the considered period. Leverage ratio is very low (1.71 in 2014) so the company is mainly financed by own resources. Furthermore, the shareholders' funds are increasing year after year thanks to retained earnings.

In the last year the company has increased total sales that registered a value of 3,254,095 th EUR with a positive rate of 2% respect previous year. Profitability ratios are at an adequate level, constant respect 2013 and improved considering 2012. ROI set at 10.09% and ROE at 15.76%. Liquidity is sufficient and it is constant over the considered period.

-In the report it has been analyzed the performance of the company with respect to the pertaining industry and country. In all considered areas (solvency, liquidity and profitability) the company has registered values equal or higher the median values of the peer group. Barilla Group has a leadership position in several markets in Europe.

-Italian economy is recovering, but in the third quarter of 2015 at a lower rate than expected. Despite this, the growth is positive with a rate of 0.2% (quarter over quarter) and driven by the domestic demand. Total demand benefited from the increase of total consumption (+0.4%). The total unemployment rate still remains stable at 11.5% versus a decrease in the previous quarters. It is necessary to notice that youth unemployment slightly increased by +0.3% (respect the previous quarter) to 39.8%.

-The Group has a worldwide presence, from Americas to China. Barilla is focused on a new project called 'Restaurant', where it aims to develop a worldwide restaurant chain to promote high quality Italian food that could improve market share and brand image abroad.

IMPORTANT

The present Corporate Credit rating is issued by modeFinance under EU Regulation 1060/2009 and following amendments.
The present Corporate Credit rating is Unsolicited: the rated entity or related third parties have not participated in the rating process and modeFinance has no access to accounts or other relevant internal documents of the rated entity or related third party.
Comprehensive information such as Rating Scales and Definitions, relevant policies and other disclosures on modeFinance Corporate Credit Ratings are available at: http://www.modefinance.com/en/rating-agency
A comprehensive description of the Methodologies used is available at http://cra.modefinance.com/en/methodologies
The quality of the information available on the rated entity and used to determine the present rating was judged by modeFinance as satisfactory. Moreover, the present credit rating was notified to the rated entity before publication in order to identify potential factual errors, as prescribed by the CRA Regulation.
Please note that the findings and conclusions that modeFinance delivers are based on public information gathered from both primary and secondary sources, whose accuracy we are not in a position to guarantee. As such modeFinance can accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect.

Contact: Eva Vocci - Head Analyst eva.vocci@modefinance.com+39-0403756740

Andrea Sorrentino - Assistant Analyst andrea.sorrentino@modefinance.com+39-0403756742

Pinar Dilek - Responsible for Rating Approvalpinar.dilek@modefinance.com+39-0403756740

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