Corporate Credit Rating for PASSUELLO F.LLI SRL (Affirm)

Press release 5 October 2023

Corporate Credit Rating for PASSUELLO F.LLI SRL: A3- (Affirm)

modefinance published the Solicited Corporate Credit Rating of PASSUELLO F.LLI SRL on the website and the rating assigned to the entity is A3- (Affirm). The analysis revealed it is an adequate company with average capability of repaying financial obligations and it is little affected by adverse economic scenarios.

 PASSUELLO F.LLI S.R.L. , based in Calalzo di Cadore (BL), is a family business with a long tradition in the energy sector, operating for several decades as supplier of electricity, diesel, LPG gas, methane, and pellets.

Key Rating Assumptions

PASSUELLO FRATELLI S.R.L. presents an adequate patrimonial and financial situation. Following some strategic corporate decisions to reduce the growing risk of a methane market shortage, in 2022 there was an increase in the level of medium-term financial debt, a simultaneous containment of trade debts and an increase in trade receivables for security deposits. This led to a slight worsening in company solvency, but improved liquidity. From a profitability point of view, during 2022 there was a significant increase in turnover, which occurred largely because of the increase in the selling price, which was generated by a higher purchase cost, and partly due to an increase in customers. The profitability indicators highlight an overall sufficient situation and a slight improvement compared to the previous year.

As regards the analysis of the Central Credit Register of the PASSUELLO FRATELLI SRL, the company does not present any critical issues and no episodes of disputes or financial tension have been noted along any of the credit lines.

The company is rooted in the Passuello family, which has been running a markedly family-run business since its foundation. Beyond the long tradition in business management, the company could benefit from a more structured organization

The Company’s positioning remains very good in terms of size compared to the peer group. The company is affected by the growing level of debt, showing a gradual worsening in its positioning in terms of solvency. Profitability remains in line with the previous year, with values below the median of the sector, around the thirtieth percentile.

The energy sector in Italy has considerable strategic importance and has undergone, over the years, a radical transformation. However, the strategic forecasts of the national government are influenced by recent geopolitical tensions and the need to change the sources of the country’s energy supply.

The outlook appears to have improved over the last few months, with a return to price reductions and greater diversification of production sources. During 2023, thanks to the favorable weather conditions, the contribution from renewables energy sources is expected to exceed 40%. The medium/long-term outlook currently shows an appreciable recovery.

Sensitivity Analysis

In the following table, the addressing factors, actions or events that could lead to an upgrade or a downgrade are summarized:


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.


Head Analyst – Giulia Valentina Facchini (Rating Analyst)

Responsible for Rating Approval – Pinar Dilek