Solicited Corporate Credit Rating for OFFICINE DI CARTIGLIANO SPA: B1- (First Issuance)
modefinance published the Solicited Corporate Credit Rating of OFFICINE DI CARTIGLIANO SPA on the website and the rating assigned to the entity is B1- (First issuance). The analysis revealed it is a company with adequate economic and financial situation, capable of facing adverse economic conditions in the medium and long term.
OFFICINE DI CARTIGLIANO SPA, located in Cartigliano (VI), has been studying, designing, and building systems for transitioning leather from wet to dry state for 50 years.
Key Rating Assumptions
OFFICINE DI CARTIGLIANO S.P.A. presents a generally 'not sufficient' economic and financial situation at the end of the 2023 financial year, showing however an improvement compared to the previous year. As of June 2024, the company has already shown significant changes compared to December 31, 2023, thanks to significant efforts detailed in the following paragraphs, which led to a broadly sufficient situation.
In the area of solvency, the indicators for 2023 remain almost unchanged from those in 2022, indicating a still not entirely sufficient condition. Conversely, the liquidity area has improved, with the main indicators showing positive trends compared to last year. Additionally, profitability indicators have also improved, thanks to a net profit recorded at the end of the 2023 financial year.
As mentioned, two extraordinary transactions and an injection of financial resources from shareholders have been made in 2024 to help rebalance the company's financial structure.
The company has a well-defined corporate structure with clear roles and responsibilities. The ownership can be easily traced back to Chairman Polato Antonio and Vice Chairman Corner Antonia of the Board of Directors. In 2024, OFFICINE DI CARTIGLIANO S.P.A. adopted a one-tier administration and control system. In this structure, the management of the company is overseen by the Board of Directors, while the Management Control Committee oversees the control function.
OFFICINE DI CARTIGLIANO S.P.A., with reference to the year 2023, presents a solid dimensional positioning in terms of turnover and adequate in terms of profitability. As far as solvency is concerned, its positioning is well below the sector median.
Euro area GDP growth is projected at 0.7% in 2024, reflecting persistent geopolitical and political uncertainty, which limits household spending while encouraging a high savings rate. Compared to the September 2024 forecasts, estimates have been downward due to weaker investment in the first half of 2024 and slower export growth driven by competitiveness challenges. In light of the short-term economic slowdown and the ongoing disinflation trend, on December 12, 2024, the ECB cut key interest rates by an additional 25 basis points.Over the medium term, growth could accelerate, increasing by 1.1% in 2025 and 1.4% in 2026. This dynamic will benefit from rising real wages, a robust labor market, and improved financing conditions due to the expected gradual stabilization of monetary policy
Sensitivity Analysis
In the following table, the addressing factors, actions or events that could lead to an upgrade or a downgrade are summarized:
Important
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 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.
Deadline for the appeal process expired without the notification of factual errors by the Rated Entity.
Modefinance did not provide any ancillary services to the entity.
The rated entity bought ancillary services provided by modefinance (preliminary rating). modefinance ensures that such situation does not imply a conflict of interest in the issuance of the present credit rating.
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.
Contacts
Head Analyst - Tommaso Viola, Rating Analyst
tommaso.viola@modefinance.com
Assistant Analyst - Fabio Politelli
fabio.politelli@modefinance.com
Responsible for Rating Approval - Pinar Dilek, Rating Process Manager
pinar.dilek@modefinance.com