Corporate Credit Rating for ELLEMME S.P.A.: B3+ (Affirm)

Press release 4 August 2022

Solicited Corporate Credit Rating for ELLEMME S.P.A.: B3+ (Affirm)

modefinance published the Solicited Corporate Credit Rating of ELLEMME S.P.A. on the CRA website and the rating assigned to the entity is B3+ (affirm). The analysis revealed it is an average to instable company with low capability of repaying financial obligations, vulnerable to possible adverse macroeconomic conditions, different management or strategies.

ELLEMME S.P.A. and the other companies connected to it operate mainly on their assets and on business development operations, also managing the development of companies that intend to expand their commercial chain in the territory. The Company was founded in 2012 by Luciano Mandiello, who expanded the business to the residential and commercial market thanks to the experience of his family, operating since the 1980s on the industrial real estate with focus on the establishment of iron buildings.

Key Rating Assumptions

The Company shows an economic-financial situation that is not entirely sufficient, with a light worsening in the solvency area due to the increase in financial exposure, while liquidity management appears adequate, although inventory turnover has a negative impact on the quality of the monetary cycle. Profitability remains constant, with a decreasing turnover but higher operating margin creation. 

Looking at the cash flows generated by the Company, operations have improved markedly. This flow, aided by financing activities, is still unable to cover the amount absorbed by investment activities. The Bank of Italy's Central Risks Report shows that the Company did not record any episodes of dispute or serious anomalies in the management of the credit lines granted to it. In addition, there was no financial tension along the revocable risks for the entire period under review and no overdrafts were recorded during the last months examined.The company structure sees the company controlled by a single shareholder, while several shareholdings are held by the company itself. 

The administrative body has a monocratic form and coincides with the figure of the sole shareholder, while the control body has a collective form, being adequately composed, and supported by the work of the sole auditor. 

The company ranks high in terms of size. Profitability is adequate and above the reference median, while solvency is at a more moderate level. The residential real estate market recovered more than expected in 2021. A significant contribution to growth came from the peripheral markets, which showed an increase of 46.6%; purchases and sales in the capital cities were also positive, up 36.1% compared to the first nine months of 2020. 

The macroeconomic picture for Italy shows how the recovery in 2021 has overall met forecasts, with sustained economic growth that could be confirmed in the coming years. However, the conflict between Russia and Ukraine, with the consequent impact on energy and food prices, undermines the forecasts, especially as regards maintaining adequate economic growth, with domestic consumption likely to be affected by rising inflation, currently estimated at over 6%. The 2022 macroeconomic forecast data will therefore be revised downwards compared to the estimates at the beginning of the year.

Sensitivity Analysis

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


The present Corporate Credit rating is issued by modefinance under EU Regulation N. 1060/2009 and following amendments.

The present rating is solicited, and 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 here.

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 here. 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 (credit risk software). 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 – Stefania Latin (Rating Analyst)

Assistant Analyst – Fabio Politelli (Rating Analyst)

Responsible for Rating Approval – Pinar Dilek (Rating Process Manager)