ELLEMME S.P.A Corporate Credit Rating (First Issuance)

Press release 8 June 2021

New rating for Ellemme S.p.A.

modefinance published the Solicited Corporate Credit Rating of ELLEMME S.P.A. on its CRA website, and the rating assigned to the entity is B3+ (first issuance).

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 Assumption

The Company shows a weak economic and financial situation, characterized by a problematic financial leverage. The management of relation between current assets and currents liabilities appears adequate, while the amount of inventories is considerable. Profitability shows declining indicators, which were affected by the extraordinary operations carried out in the last year.

Looking at the cash flows, it is possible to detect a correct relation between financing activity and investments, however penalized by an inefficient operating activity. On this regard, the Company need to improve the management of the working capital, which has absorbed a significant amount of cash in the last year.

The Central Credit Register of Bank of Italy shows that the Company has not recorded any disputes or serious anomalies regarding the management of credit lines. The Company presents however financial tension and some slight overruns. In the course of 2020, there was also a slight overrun.

Regarding corporate structure, the Company is controlled by a single shareholder, while there are seven different subsidiaries held by the Company. The administrative body has a single-member who coincides with the shareholder, while the control body has a collegial form and is supported by an auditor. There are no black records on Company, shareholder or administrative body.

The Company is positioned well above the sector median in terms of size and profitability, while it is among the least capitalized of the entire analysis sample. The peer group’s solvency indicators are adequate and show signs of improvement throughout the period considered. Liquidity indicators are growing and adequate too, while the sector’s ROE value is low.

The real estate market showed a recovery in second half of 2020, which has effectively reduced the negative impact expected for the year. The macroeconomic situation in Italy is significantly influenced by the serious pandemic crisis that has hit the country and which is still underway: a recovery of the national economic system is gradual, full of difficulties and uncertainties.

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.

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 – Christian Raimondo (Rating Analyst)
+39 040 3756740

Responsible for Rating Approval – Pinar Dilek
+39 040 3756740