Corporate Credit Rating 2025 for LUPATOTINA GAS E LUCE SRL SRL: B1- (First Issuance)

modefinance has published on its website the Corporate Credit Rating (Solicited) of LUPATOTINA GAS E LUCE S.R.L., assigning a rating of B1- (First issuance). The analysis highlights that the company has an adequate financial position, appearing capable of withstanding adverse economic conditions in the medium and long term.

Established in 2002, LUPATOTINA GAS E LUCE S.R.L. operates in selling natural gas and electricity, covering over 92% of the gas market in the local network of San Giovanni Lupatoto and serving all 98 municipalities of the Province of Verona. The company is wholly owned by the Municipality of San Giovanni Lupatoto.

The solvency area has shown improvement in the ratio between equity and third-party capital, and the Company’s financial exposure has also improved. Liquidity management remains sound, and profitability has increased, driven by higher margins and increased net income relative to 2023.

With regard to corporate governance, the Company has a clearly defined ownership structure, with the MUNICIPALITY OF SAN GIOVANNI LUPATOTO as its majority shareholder. The Company is managed by a Sole Director, Mr. Loriano Tomelleri, while oversight is provided by the Board of Statutory Auditors, chaired by Dr. Andrea Grobner.

In terms of size, the Company maintains a solid market position, ranking among the largest firms in its sector by revenue. Solvency and profitability indicators remain below the sectorn medians but have improved over the previous fiscal year. Regarding the reference peer group, capitalization levels are adequate and have improved over the last three years. Short-term financial stability remains sound, while peer group profitability is adequate, though slightly lower than in 2022.

In 2024, the Italian energy market experienced a return to more stable conditions, with electricity and gas prices declining due to increased renewable energy production, reduced consumption, and favorable weather conditions. However, prices remain above pre-crisis levels, primarily due to the continued reliance on fossil fuels, which are more expensive and volatile. Renewable sources, particularly solar and hydroelectric power, accounted for 50% of electricity production. To support this energy transition, Terna launched €2.3 billion of strategic infrastructure investments and introduced MACSE, a new mechanism to incentivize energy storage, with initial auctions scheduled for 2025. The EU increased the share of LNG in its gas imports (from 20% in 2021 to 38% in 2024), offsetting the reduction in Russian gas through new terminals such as those in Piombino and Ravenna. Gas storage levels reached record highs, with 90% of winter 2025/26 capacity already allocated by April 2025. Nonetheless, structural vulnerabilities remain, including dependence on imports and exposure to geopolitical and climate-related risks, which require ongoing monitoring.

From a macroeconomic standpoint, economic activity in Italy remained subdued in Q4 2024, impacted by continued weakness in manufacturing and a slowdown in the services and construction sectors. These sectors nonetheless showed slight expansion, supported in part by the National Recovery and Resilience Plan (PNRR). Domestic demand was constrained by a slowdown in household spending and persistently unfavorable investment conditions. In autumn, Italian goods exports were hindered by a sharp decline in global demand, and going forward, protectionist policies announced by the new U.S. administration are expected to negatively affect exports to the U.S. market. 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 the 2025–2027 period.

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 company purchased ancillary services from modefinance (preliminary rating). Modefinance guarantees that this purchase of ancillary activities does not constitute any conflict of interest.

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 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