Corporate Credit Rating 2025 for PASSUELLO FRATELLI SRL: A3- (Affirm)

modefinance published the Solicited Corporate Credit Rating of PASSUELLO FRATELLI S.R.L. on the website and the rating assigned to the entity is A3- (Affirm). The analysis revealed it is an adequate company with average capability of repaying financial obligations and it is little affected by adverse economic scenarios.

Passuello Fratelli Srl is a historic company based in Calalzo di Cadore (Belluno), with origins dating back to the early 20th century, when the family started a business in the cereal trade and later expanded into fuel sales. Over the years, the company has evolved into an integrated provider of electricity, natural gas, and heating products, primarily serving Northeast Italy, with a well-established presence in Belluno, Trentino-Alto Adige, and Friuli-Venezia Giulia.

In 2024, Passuello Fratelli S.R.L. (hereinafter “the Company” or “Passuello Fratelli”) recorded revenue of €125.1 million (+27% YoY), driven by a 22% increase in gas volumes and a 59% increase in electricity volumes. The growth in volumes translated into an EBITDA of €7.9 million (+€1.1 million YoY), supported by a stable margin, unchanged at 6%. The Company closed the year with net profit rising to €4.9 million, maintaining a solid ROE. Following the distribution of €0.3 million in dividends, strong operational results contributed to a consolidation of shareholders’ equity, which increased to €21.8 million. Net Financial Position (NFP) was close to zero as of December 2024 (€3.8 million net debt at 31/12/2023), reflecting a significant reduction in financial indebtedness. Current trading data as of June 2025 indicate the absence of financial debt and the maintenance of a robust financial and equity structure.

In 2024, the Company generated significant net operating cash flow, supported by the expansion of its customer base. This cash flow fully covered both working capital requirements and investments (which were not significant given the specific nature of the business). However, financial activities absorbed nearly €8 million of liquidity, primarily due to substantial repayments of financial loans made during the year, resulting in a decrease in cash and cash equivalents from €4.7 million at December 2023 to €0.9 million at the end of 2024. As of June 2025, the Company’s NFP is cash positive, confirming a solid financial and equity structure.

The Company's is owned by the Passuello family, whose members serve on the Board of Directors. No supervisory board is in place, while the statutory audit of the annual financial statements is entrusted to the specialized firm CROWE BOMPANI S.P.A. The principal shareholder is Passuello S.R.L. (30.77%), which demonstrates a balanced economic and financial position. The customer base for diesel is primarily business-oriented, whereas electricity and gas are predominantly marketed to retail clients (households and condominiums) or small VAT-registered businesses. A strong local presence, combined with a focus on service quality and direct customer relationships, represents a key driver of customer loyalty, allowing the Company to maintain churn rates below industry averages.

In terms of scale, Passuello Fratelli S.R.L. is among the leading companies in its sector, driven by 29% annual revenue growth, mainly supported by increased electricity and gas volumes. Regarding solvency, substantial debt repayments and strengthened equity have enabled Passuello Fratelli to achieve a solid position, well above the sector median. Profitability is in line with the sector median, reflecting a healthy level of earnings. The peer group shows generally adequate solvency, with a high proportion of non-financial liabilities. Liquidity indicators have remained balanced throughout the analysed period. Finally, profitability has continued to strengthen, with the median ROE reaching a robust level, reflecting the solid performance achieved in the last fiscal year.

In 2024, energy prices in Italy stabilized due to the expansion of renewable sources, reduced consumption, and favourable weather conditions. However, prices remained above pre-crisis levels due to the impact of fossil fuels. Renewable sources accounted for approximately 50% of electricity generation and are expected to be further supported by new Terna investments and the launch of the MACSE, which aims to incentivize storage systems. At the European level, LNG accounted for 38% of gas imports, partially offsetting the decline in Russian supplies. As of the end of April 2025, gas storage stood at 47%, with 90% of capacity already allocated for the 2025/26 season, thereby ensuring energy security.

In the first quarter of 2025, the Italian economy posted moderate growth, supported by household consumption, underpinned by a stable labor market and rising real incomes. Investments remained weak, constrained by underutilized production capacity and tight financial conditions. Growth was driven by the services sector and construction projects linked to the National Recovery and Resilience Plan (NRRP). Manufacturing showed signs of recovery, though it remains vulnerable to rising tariffs and geopolitical uncertainty. The Bank of Italy forecasts GDP growth of 0.6% in 2025, 0.8% in 2026, and 0.7% in 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 is 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 isn't 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