Corporate Credit Rating 2025 for GP HOLDING SRL: B1 (Affirm)

Press release 31 July 2025

Solicited Corporate Credit Rating for GP HOLDING SRL: B1 (Affirm)

modefinance published the Solicited Corporate Credit Rating of GP HOLDING S.R.L. on the website and the rating assigned to the entity is B1 (Affirm). The analysis revealed that the company has an adequate economic-financial situation with average capability of repaying financial obligations and it is little affected by adverse economic scenarios.

GP HOLDING S.R.L. (hereinafter “GPH”), active in Monza since 2018, is a financial holding company specializing in the investment and management of equity stakes in companies operating mainly in the energy sector. As of 2024, the company holds four subsidiaries in its portfolio, the most significant of which is Earth Energy S.r.l. (100% ownership), engaged in the import and wholesale distribution of natural gas and electricity on the Italian market.

Key Rating Assumptions

GPH presents an economic and financial situation with no significant critical issues. The company is characterized by minimal leverage, supported by a shareholders’ equity of €311,000 and a limited level of liabilities, notably marked by the complete absence of financial debt. Liquidity and fixed asset coverage ratios remain well balanced.

On the income side, financial income was recorded, attributable to a capital gain from the disposal of an equity investment. Unlike in 2023, no income was generated from subsidiaries. It is worth noting that GPH’s economic and financial performance is closely linked to that of its subsidiary, Earth Energy, which demostrates a sound and adequate economic and financial profile. In 2024, Earth Energy recorded an increase in business volume, strong profitability, and a balanced capital and financial structure, resulting in a rating upgrade to B1+.

As previously mentioned, GPH operates as an investment holding company, holding a controlling interest in Earth Energy, along with minority stakes in three other companies. The sole shareholder of GPH, Carlo Maria Bagnasco, also serves as its sole director and as CEO of the subsidiary. The company currently does not have a controlling body.

Compared to its reference peer group, the operating company Earth Energy ranks among the largest firms in its market segment in terms of revenue, with a size score above the 80th percentile. From a profitability standpoint, the Company is also positioned among the top performers within the peer group. Conversely, in terms of solvency, it ranks below the median, primarily due to its leverage ratio.

The sector peer group as a whole reflects a solid overall financial condition. The companies analyzed show adequate capitalization and a balanced financial leverage structure. The management of the current assets-to-liabilities ratio appears appropriate. Lastly, profitability is reflected in median indicators at adequate levels.

The fundamentals of the energy sector in Italy have improved, thanks to the stabilization of gas and electricity prices, accompanied by reduced volatility compared to the record levels observed in 2022. However, the increasingly strategic role of LNG (liquefied natural gas) in the energy mix — accounting for 38% of gas imported EU in 2024, up from 20% in 2021 — as a substitute for Russian pipeline gas, entails higher procurement costs and exposes Italy to the risk of potential price increases driven by global market dynamics (such as rising gas demand in Asia, changes in U.S. shale gas extraction policies, etc.).

At the macroeconomic level, GDP growth remained modest in 2024 due to tight financial conditions - with interest rates still high in the Eurozone – and inflation hovering around 2%, which is weighing on household spending and investment. Global growth is also potentially affected by heightened geopolitical tensions and a tightening of U.S. trade policy.

Sensitivity Analysis

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

Important

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.

Modefinance did not provide any ancillary services to the entity. 

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.

Contacts

Head Analyst - Elisa Graffi, Rating Analyst
elisa.graffi@modefinance.com

Responsible for Rating Approval - Naomi Busdon, Rating Process Manager
naomi.busdon@modefinance.com