Corporate Credit Rating 2024 for PASOLINI LUIGI SRL: B1 (Upgrade)

modefinance published the Solicited Corporate Credit Rating of PASOLINI LUIGI S.R.L. on the website and the rating assigned to the entity is B1 (upgrade). The analysis revealed how the company has adequate capabilities to honor obligations and can face adverse and changing economic conditions in the medium and long term.

PASOLINI LUIGI S.R.L. specializes in creating exhibition and communication solutions for retail points of sale. The company is currently a significant reference point for large-scale retail distribution chains, thanks to its ability to offer effective and innovative exhibition solutions. Since 2020, the company has assumed the role of general contractor, providing consultancy, concept development, design, and turnkey set-up for retail points of sale. This approach ensures alignment with the diverse corporate profiles and images of its clients, positioning the company as the sole interlocutor for the supply and set-up of sales and consumption areas.

The company presents a solid economic and financial position, characterized by significant revenue growth, which positively impacts operating margins and profitability indicators. The capital structure is aligned with the activities carried out and the sources of financing used. The increase in gross operating margins ensures the sustainability of debt without any critical issues. Additionally, the management of the relationship between short-term investments and sources remains in substantial balance between availability and liabilities.

The cash flows analysis confirms the company’s solid ability to generate resources through its income flows and effectively manage working capital dynamics. During the fiscal year, the company reduced its reliance on financial debt, which overall does not present any critical issues, as highlighted by the analysis of the Italian Central Credit Register.

The governance structure is appropriate for the company's size: the administrative body consists of the two majority shareholders, an there is a single-member supervisory body. Starting in 2023, the company adopted the Organizational Model pursuant to Legislative Decree 231/2001, and as of January 2024, its brand was registered in the Special Register of Historic Brands of National Interest.

The company's shareholder structure consists of Giacomo Pasolini, Pierpaolo Pasolini, and the company Athena Financial Advisory S.r.l., the latter being a partner in financial support.

The company stands out for its remarkable positioning in terms of revenue, ranking just below the 90th percentile within the analyzed sample. The peer group as a whole demonstrates adequate levels of solvency, liquidity, and profitability. The distribution of companies in the sector shows a concentration of enterprises above the sufficiency threshold, thereby underscoring the overall good health of the peer group.

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 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.

No amendments were applied after the notification process.

The rated entity is a buyer of ancillary services provided by modefinance (private corporate rating). modefinance ensures that such situation does not imply a conflict of interest in the issuance of the present credit rating.

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, Rating Analyst
fabio.politelli@modefinance.com

Responsible for Rating Approval - Pinar Dilek, Rating Process Manager
pinar.dilek@modefinance.com