Corporate Credit Rating 2024 for METANO NORD HOLDING SRL: B1+ (Affirm)

modefinance published the Solicited Corporate Credit Rating of METANO NORD HOLDING S.R.L. on the website and the rating assigned to the entity is B1+ (Affirm). The analysis revealed that the Company has an adequate economic and financial situation and can face adverse economic conditions in the medium and long term.

METANO NORD HOLDING S.R.L. is the leading company of the Metano Nord Holding Group, primarily active in the trade of electricity and natural gas, the urban distribution of natural gas, and, to a lesser extent, in the construction and real estate sectors. The Group operates in the Italian market, particularly in the Lombardy region.

The company presents an economic and financial situation characterized by a generally satisfactory solvency and adequate liquidity management. The area of profitability, impacted by lower volumes traded and regulatory provisions for end-consumer protection, shows indicators that are rather limited but substantially in line with the previous year's levels. The postponement to 2024 of the financial regulation of credits related to the mechanism for allocating 2022 gas volumes had a negative impact on the cash flow from operations, heavily penalized by the absorption of resources by working capital. The raising of new financial loans made it possible to support the investments and increase cash availability.

Metano Nord Holding S.r.l., which directly or indirectly controls several other companies, has an administrative body consisting of two directors and has assigned the control function to a sole auditor. The legal audit of the financial statements and consolidated financial statements is carried out by a specialized company. The governance and control structures of the main companies within the Metano Nord Holding Group are considered adequate.

The analysis of the peer group reveals a progressive increase in financial leverage and a decline in liquidity indicators. While profitability remains adequate, it has shown a marked deterioration. The company's positioning in terms of size and solvency is sound, but its profitability is below the sector median.

The energy sector in Italy is of considerable strategic importance and has recently undergone profound changes due to geopolitical tensions. The strategy of diversifying supply sources has contributed to a gradual reduction in energy commodity prices, supported also by the increasing share of renewable sources in the energy production mix. At the macroeconomic level, Italy’s growth prospects in the medium term remain limited, influenced by the ongoing slowdown in the United States and globally. 

The following table lists the factors, actions, or events that could lead to a rating upgrade or downgrade:

_{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: https://cerep.esma.europa.eu/cerep-web/ and ESMA European Rating Platform https://registers.esma.europa.eu/publication/searchRegister?core=esma_registers_radar.}

_{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 - Stefano Chirsich, Rating Analyst
stefano.chirsich@modefinance.com

Responsible for Rating Approval - Giulia Chiarparin, Compliance & Risk Function
giulia.chiarparin@modefinance.com