Corporate Credit Rating 2025 for GLOBAL POWER SPA: B1- (Affirm)

modefinance has published on the website the Corporate Credit Rating (Solicited) of GLOBAL POWER S.P.A., assigning the rating of B1- (Affirm). The analysis highlights how the entity has adequate capabilities to honor obligations and is able to address adverse and changing economic conditions in the medium and long term.

GLOBAL POWER S.P.A., established in 2004, operates within the energy sector as a provider of electricity and gas. In particular, the Company conducts its business as a supplier to major Italian companies, institutions, and Public Administrations.

The Company is currently facing a challenging economic and financial situation, affected by the lingering impact of extraordinary circumstances in a market characterized by strong inflationary pressures. Solvency indicators show a decline due to reduced equity, while liquidity indicators remain close to neutral levels. The profitability of equity has been negatively impacted by extraordinary factors, although the return on invested capital remains adequate.

In terms of cash flow analysis, operating cash flow has improved significantly compared to the previous year, largely due to more efficient management of net working capital. However, this improvement is insufficient to fully offset the liquidity drain from investment and financing activities. As a result, total cash flow remains negative.

The governance structure is appropriate for the company's size, with both the administrative and supervisory bodies operating collegially. Additionally, the company has engaged an auditing firm to conduct statutory audits.

Regarding analysis, the reference peer group exhibits low and improving levels of leverage and financial leverage compared to the previous year. Liquidity indicators remain stable and above one, while return on equity continues to rise, reaching a more than adequate level.

Finally, recent developments in Italy’s energy sector underscore its significant strategic importance and the radical transformation it has undergone over the years. The market is notably fragmented, creating a considerable barrier to entry. Additionally, business volume trends are closely linked to fluctuations in energy commodity prices.

The conflict between Russia and Ukraine has necessitated a reconfiguration of the country’s energy supply sources, a transition that has been well-supported by favorable climatic conditions throughout 2023. This shift has also contributed to a significant increase in the share of renewable energy in total energy production. In the medium to long term, the sector appears to be on a positive recovery trajectory, with reduced uncertainty.

The present Corporate Credit Rating is published by modefinance in accordance with EU Regulation No. 1060/2009 and subsequent 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 adopts the following definition of default: a company in bankruptcy, in involuntary liquidation, in controlled administration, or that is insolvent with respect to an expired financial commitment. 

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.

In accordance with the Credit Rating Agencies Regulation, this rating has been transmitted to the company evaluated before its publication, so as to allow it to identify any material errors contained in the report. 

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 - Fabio Politelli, Rating Analyst
fabio.politelli@modefinance.com

Assistant Analyst - Tommaso Viola, Rating Analyst
tommaso.viola@modefinance.com

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