Corporate Credit Rating for BARILLA HOLDING SPA: A3- (Upgrade)

modeFinance published on the website cra.modefinance.com the Corporate Credit Rating (Upgrade) of BARILLA HOLDING S.P.A. and the rating assigned to the entity is A3- (upgraded from B1+).

The company has a good capability of repaying financial obligations and very low dependence on possible adverse macroeconomic conditions.

The reasons that have driven this decision are:

• The company has shown a good performance over the considered period, with a very strong position in solvency and good results in profitability.
•  The company has a very low financial indebtedness over all considered period. Solvency indicators are better than the previous year. Leverage ratio is very low (1.54 in 2015); so the company is mainly financed by own resources. Furthermore, the shareholders' funds are increasing year after year thanks to the retained earnings.
• In the last year, the company has increased total sales that registered a value of 3,382,767 th EUR with a positive rate of 4% with respect to the previous year. Despite a slight fall at Profitability ratios with respect to 2014, they still remain at adequate levels. EBIT has increased from 284,145 th EUR in 2014 to 298,611 th EUR in 2015 and Interest paid fell in 2015. Liquidity is in Adequate levels and they improved with respect to 2014.
• In the present report, we have analyzed the performance of the company with respect to the pertaining industry and country. In all considered areas (solvency, liquidity and profitability), the company has registered values equal or better performing than the median values of the peer group (defined as the comparable companies of the same sector, country and turnover class). Barilla Group has a leadership position in several markets in Europe.
• The Group has a worldwide presence, from Americas to China. It is operating in 26 offices, exports its products to more than 100 countries and owns 29 production sites across 9 countries. Through to its restaurant projects, it aims to develop a worldwide restaurant chain to promote high quality Italian food.
• Even moderately, Italian economy is recovering: in Q1 2016 GDP, adjusted for calendar effects and seasonally adjusted, rose by 0.3% quarter over quarter. The increase in stable employment and the slight increase in GDP gave confidence to the businesses as well as households. Compared to the previous quarter, national final consumption and gross fixed investment increased to the same degree (+0.2%), while the slowdown in world trade has affected the trend in exports.
• The Group is active in new technologies (for example: "The 3D Pasta Printer" project). Additionally, the group has released new healthy products with less fat, sugar, but instead rich of fibers in various markets, by this way it aims to spread healthy "Mediterranean" eating culture all around the world.

The present Corporate Credit rating is Unsolicited: the rated entity or related third parties have not participated in the rating process and modeFinance has no access to accounts or other relevant internal documents of the rated entity or related third party.

Comprehensive information such as Rating Scales and Definitions, relevant policies and other disclosures on modeFinance Corporate Credit Ratings are available at www.modefinance.com/en/rating-agency.

A comprehensive description of the Methodologies used is available at cra.modefinance.com/en/methodologies.

The quality of the information available on the rated entity and used to determine the present rating was judged by modeFinance as satisfactory. Moreover, the present credit rating was notified to the rated entity before publication in order to identify potential factual errors, as prescribed by the CRA Regulation.

Please note that the findings and conclusions that modeFinance delivers are based on public information gathered from both primary and secondary sources, whose accuracy we are not in a position to guarantee. As such modeFinance can accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect.

Pinar Dilek - Head Analyst
pinar.dilek@modefinance.com
+39 040 3756740

Giulia Valentina Facchini - Assistant Analyst
giulia.facchini@modefinance.com
+39 040 3756742

Eva Vocci - Responsible for Rating Approval
eva.vocci@modefinance.com
+39 040 3756740