Passuello F.lli Corporate Credit Rating (Affirm)

Press release 24 September 2020

Corporate Credit Rating (Solicited) for PASSUELLO F.LLI S.R.L.: A3+ (Affirm)

modefinance published the Solicited Corporate Credit Rating of PASSUELLO F.LLI S.R.L. on its CRA website, and the rating assigned to the entity is A3+ (Affirm). The analysis revealed that the Company has average capability of repaying financial obligations, and is little affected by adverse economic scenarios.

Passuello F.lli S.r.l., based in Calalzo di Cadore (BL), is a family business with a long tradition in the energy sector, operating from several decades as suppliers of electricity, diesel, LPG gas, methane and pellets.

Key Rating Assumption

Over the whole period considered, the Passuello F.lli S.r.l. appears adequate, proving to be very solid both under the equity-financial and profitability point of view. The company proved to be able to generate significant liquid resources both in terms of self-financed cash flow and operating cash flow. The latter in particular shows significant signs of improvement compared to the previous year, thanks to a better management of working capital.

The company is rooted in Passuello family, which has been running a markedly family-run business since its foundation. Beyond the long tradition in business management, the company could benefited from a more structured organization.

The company operates in a very competitive sector, where the main big competitors benefit from the wide diffusion on the national territory. Compared to the sector's competitors, the Passuello F.lli is well-positioned.

The energy sector is subjected to high regulatory and technological variability, but to date the company has shown a great adaptability, achieving satisfactory results compared to its competitors. The sector appears healthy overall, although no signs of growth are given.

Due to the impact of the Covid-19 pandemic on economic activities, gross energy consumption will decrease in 2020, before returning to growth in 2021. The green policies undertaken will also lead to a further reduction in coal and oil consumption, in favor of renewable energy sources, while natural gas will maintain an important role in satisfying Italian energy needs.

The Italian economy, and the global one, are facing an unprecedented shock due to the Covid-19 outbreak, with significant contraction in GDP values and an increase in unemployment rate. Extraordinary measures have been adopted both at national and EU level and a return to pre-crisis levels will not happen before 2024.

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 – Fabio Politelli
+39 040 3756740

Assistant Analyst – Andrea Marion
+39 040 3756740

Responsible for Rating Approval – Pinar Dilek
+39 040 3756740