Corporate Credit Rating 2024 for PULITALIA SPA: B1- (First Issuance)

Press release 5 December 2024

Solicited Corporate Credit Rating for PULITALIA SPA: B1- (First Issuance)

modefinance published the Solicited Corporate Credit Rating of  PULITALIA 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.

PULITALIA SPA, located in Vicenza (VI), is a company owned by the Franchetto family that has been manufacturing detergents, machinery, and disposable equipment for industrial cleaning for 40 years.

Key Rating Assumptions

PULITALIA SPA demonstrates a sufficient economic and financial position. The company's solvency is generally adequate, showing significant improvement in both equity-to-debt ratio and leverage levels. Liquidity management is satisfactory. Although profitability has slightly improved compared to the previous year, the indicators remain below satisfactory levels.
An analysis of the Central Risk Register indicates that the company has not experienced any protest or anomaly and has effectively managed the credit lines provided. 

PULITALIA S.P.A. has a well-defined corporate structure. The ownership of the company can be easily traced to the Franchetto family, specifically divided among Franchetto Paola, Franchetto Vittoria, and Franchetto Marco. The management is led by the Board of Directors, chaired by Mrs. Franchetto Vittoria. Control and auditing functions are managed by the Board of Statutory Auditors, chaired by Mr. Zarantonello Stefano. Additionally, the company has a majority shareholding in CAMM S.R.L

Compared to the peer group, PULITALIA S.P.A. has a strong dimensional position, being one of the largest companies by turnover within its industry. Regarding solvency, the positioning seems adequate and aligns with the sample median. However, profitability is notably below the median, failing to meet sufficient levels. 

On a macroeconomic level, Italy's growth during the summer months was hampered by ongoing weaknesses in manufacturing, despite a continual expansion in the services sector. Aggregate demand was primarily supported by a rising consumption trend, thanks to an increase in disposable income, although net exports declined in a context of sluggish growth in the main euro area economies. For 2024, moderate GDP growth is anticipated, with a faster acceleration expected in the following two years, leading to a cumulative GDP increase of over 2%. This growth will be fueled by the recovery of household purchasing power and international trade. Nonetheless, high financing costs and reduced incentives in the construction sector will likely affect investment. These effects should be somewhat offset by the measures outlined in the National Recovery Plan (NRP).

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 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.

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