Corporate Credit Rating 2025 for BORGOSESIA SPA: A3- (Affirm)

modefinance published the update of the Solicited Corporate Credit Rating of BORGOSESIA S.P.A. on the website and the rating assigned to the entity is A3- (Affirm). The analysis indicates that the company has an adequate ability to meet its obligations, though it remains somewhat exposed to adverse economic conditions.

BORGOSESIA S.P.A. is a joint-stock company listed on the Italian Stock Exchange, operating in the investment sector and managing assets on behalf of third-party investors. Founded in 1873 as a textile and wool operator, the company has then undergone several changes of ownership over the decades. BORGOSESIA S.P.A. is organized into two distinct divisions: BORGOSESIA REAL ESTATE, focused on real estate investments, and BORGOSESIA ALTERNATIVE, dedicated to investments in movable assets.

BORGOSESIA S.P.A. confirms a balanced economic and financial position. Solvency remains at adequate levels, although the leverage indicator has increased. The company continues to display an appropriate degree of capitalization, maintaining a sound balance between equity and debt. Despite a slight increase in business volume compared to 2023, profit has recorded a modest decline; however, the key indicators remain at satisfactory levels.

The Company's governance and control structure reflects the best practices recommended by Consob. The company’s size is sufficient, while the peer group is characterized by a general decline in indebtedness and stable profitability.

From a macroeconomic perspective, economic activity in Italy remained subdued in Q4 2024, reflecting continued weakness in the manufacturing sector and a moderation in services and construction. Nevertheless, these sectors recorded slight expansion, partly supported by the National Recovery and Resilience Plan (PNRR). Domestic demand was restrained by slower household consumption, while investment conditions remained unfavorable. During the autumn, export of Italian goods was affected by a marked contraction in global demand. Looking ahead, protectionist measures announced by the new U.S. administration are expected to have a negative impact on exports to the U.S..

According to the latest projections from the Bank of Italy, GDP grew by 0.5% in 2024 and is expected to expand at an average annual rate of around 1% over 2025–2027.

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 - Tommaso Viola, Rating Analyst
tommaso.viola@modefinance.com

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