Corporate Credit Rating 2025 for BORA SPA: B1 (Affirm)

modefinance published the update of the Solicited Corporate Credit Rating of BORA S.P.A. on the website and the rating assigned to the entity is B1 (Affirm). The analysis revealed that the Company has an adequate economic and financial situation and can face adverse economic conditions in the medium and long term.

BORA S.P.A. was founded in 1975 by Dr. Elio Bora, initially specializing in the design and manufacture of molds and components for the household appliance market. Over the years, the company diversified into the automotive industry, which offers higher profit margins and has become its core business, accounting for approximately 60% of turnover in fiscal year 2024. BORA operates production facilities in Italy and Poland, serving Europe - particularly Italy, France, Spain, Great Britain, Germany, Poland, Slovakia, and the Czech Republic - and generates a smaller portion of revenue from international markets such as Turkey and Mexico.

The company highlights an overall balanced economic and financial situation. In 2024, it recorded a significant improvement in economic performance, with revenues rising 12% to €37.1 million and an EBITDA of €2.5 million, representing 7% of revenues. This growth was supported by the recovery in volumes from automotive customers and re-pricing actions. The fiscal year ended with a net profit of €0.6 million, achieving a ROE of 5.2%. Despite this sound economic performance, shareholders’ equity decreased from €11.4 million to €10.8 million due to a share buy-back carried out in preparation for the shareholder Barchiesi’s exit. The company’s financial and capital structure appears balanced. Data updated to June 2025 show a significant reduction in financial debt to €9.8 million (down €1.6 million year-on-year), driven by repayments. Overall, the level of indebtedness remains sustainable, and the Net Financial Position (NFP) shows a gradual improvement from €4.6 million in December 2024 to €3.6 million in June 2025, particularly considering the consolidation of revenues and margins indicated by current trading data for the first half of 2025.

Between December 2023 and 2024, liquidity changed from €6,5 million to €6.8 million, reflecting the sound contribution from operating cash flow, even though it was lower due to the increase in working capital following the termination of a factoring arrangement with a major customer. The closing of a term deposit generated €0.8 million in net investment proceeds, while the purchase of 50% of the share package held by the outgoing shareholder absorbed liquidity. In the first half of 2025, cash availability further decreased from €6.8 million to €6.2 million, mainly due to net loan repayments (€1.5 million) and the completion of the purchase of remaining treasury shares. Operating cash flows financed these outflows, mitigating the reduction in liquidity.

The Company has a Board of Directors composed of two members: Cristiano Bora, serving as Chairman, Chief Executive Officer and shareholder, and Valerio Fedeli. Additionally, six authorized signatories hold specific powers, including Lorenzo Buldrini, appointed CFO in 2024. Bora S.p.A. has a collegial supervisory body and has also appointed an external professional to carry out monitoring activities pursuant to Legislative Decree 231/2001. The statutory audit of the financial statements is entrusted to a specialized auditing firm. In 2006, the Polish subsidiary Bora Poland Sp. z o.o. was established — a manufacturing company that, on behalf of Bora S.p.A., performs processing activities related to the household appliance market. In 2025, BORA achieved the highest Legal Rating (3 stars) awarded by the Italian Competition Authority (AGCM); since 2021, the Company has been publishing its Sustainability and ESG Report and will be honored with the Sustainability Award by Kon Group, being ranked among the top 100 Italian companies for ESG performance.

The Company holds a strong market position in terms of size, reporting an 11% increase in sales revenues in 2024, driven by the launch of new automotive projects and the implementation of price revisions. In terms of solvency, the Company remains below the industry median due to higher financial leverage compared to its peer group, though the ratio has improved from 1.05 in December 2024 to 0.92 in June 2025. Profitability has returned to an acceptable level thanks to the recovery in performance initiated in 2024. The reference peer group displays adequate solvency and limited reliance on financial debt. The management of short-term assets and liabilities also appears balanced, with a current ratio well above one. However, sector profitability remains modest and has been declining over the past three years.

The EU economy closed 2024 with real GDP growth of 1%, marking a modest yet positive recovery from the stagnation of the previous year. This result was supported by favorable monetary conditions, a strong labor market, and upward revisions of economic forecasts. However, at the beginning of 2025, growth expectations were revised downwards due to considerable market uncertainty triggered by the protectionist policies of the new Trump administration, which introduced tariffs on numerous imported products. These measures caused market turbulence, leading to a downward revision of the EU's growth forecasts for fiscal year 2025. Nevertheless, private consumption remains relatively strong, supported by rising wages and easing inflation. The latter is expected to reach the European Central Bank’s 2% target in 2025, while the current account surplus and fiscal positions are projected to remain stable, despite a slight increase in debt levels. The outlook remains clouded by significant risks, including increasing fragmentation in global trade, geopolitical instability, and the impacts of climate change. Still, potential growth opportunities exist, stemming from the easing of U.S.–China tensions, new EU trade initiatives, and infrastructure investments.

In 2024, global motor vehicle production recorded a slight decline (-0.8%) compared to 2023, totaling 93.5 million units (+1.4% compared to pre-pandemic 2019 volumes). This result reflects the expansion of China (+3.7% over 2023), while Japan and Europe recorded decreases of 8.5% and 6.3%, respectively. After a 32.3% drop in 2024, which brought production down to 591 thousand units, ANFIA estimates that motor vehicle output in Italy could further decline to around 500 thousand units by the end of 2025, representing an additional 15.4% decline from 2024. The Italian car registration market closed 2024 with 1.56 million units, volumes broadly in line with the previous year (-0.5%), and ANFIA forecasts a moderate 2.5% decrease in registrations for 2025. Overall, the 2025 outlook appears pessimistic across major economic indicators (revenues, orders, exports, and employment), according to assessments from various industry participants. In operational terms, short-term concerns include the difficulty in obtaining recognition of production cost increases from OEMs and the rise in logistics costs.

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 http://cra.modefinance.com/en

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 http://cra.modefinance.com/en/methodologies.

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 - Carmela Santomarco, Rating Analyst
carmela.santomarco@modefinance.com

Responsible for Rating Approval - Pinar Dilek, Rating Process Manager
pinar.dilek@modefinance.com