Corporate Credit Rating 2024 for DRILLMEC SPA: B1 (First Issuance)

Press release 23 January 2024

Solicited Corporate Credit Rating for DRILLMEC SPA: B1 (First Issuance)

modefinance published the Solicited Corporate Credit Rating of DRILLMEC 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.

Drillmec S.p.a. is a company specialized in the design and construction of complete rigs and drilling equipment for major players in the Oil & Gas sector, for both Onshore and Offshore applications. Part of the Indian group Megha Engineering and Infrastructures Limited since 2020, the Company can boast a consolidated experience given by a century of presence in the field at a global level and a remarkable technological know-how, distinctive elements that are particularly appreciated by its reference customers.

Key Rating Assumptions

The Company's economic-financial situation is characterized by satisfactory solvency and adequate liquidity management. The profitability area, in spite of the appreciable increase in operating margins achieved during the financial year 2022, shows return on equity and invested capital indicators that are still rather low. Thanks to the volume of orders in the portfolio, ongoing negotiations and the advantages offered by the operational integration with the other companies of the MEIL group, the management of Drillmec is confident of being able to achieve a good improvement in 2023, both in terms of business volume and margins.

As far as the governance system is concerned, the company's organizational and control structure is in line with best practices and can also be considered adequate in relation to the size of the company and the activity performed.

The peer group analysis shows a satisfactory and rather stable solvency and liquidity condition over the entire period considered. Although the median return on risk capital showed a slight decrease in 2022 compared to the previous year, the profitability of the sector is also at an adequate level. Compared to the other companies in the peer group, Drillmec has a rather high size positioning. In contrast, solvency and profitability are lower than the respective sector medians.

Despite the gradual growth in the use of renewable energy sources, global energy demand will remain inexorably dependent on fossil fuels in the coming years. Global oil consumption is expected to continue to increase until 2030, driven by Asia, Latin America and the Middle East, while natural gas will benefit at least until 2032 from the driving effect of Asian demand.

Eventually, looking at the macroeconomic context, forecasts indicate global economic growth is expected to remain at rather moderate levels in 2023-2024 and then gradually strengthen between 2025 and 2028.

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 1060/2009 and following amendments.

The present rating is solicited and is 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 at

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 at

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  a buyer of ancillary services provided by modefinance (preliminary rating). modefinance ensures that such situation does not imply a conflict of interest in the issuance of the present credit rating.

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 - Stefano Chirsich, Rating Analyst

Responsible for Rating Approval - Pinar Dilek, Rating Process Manager