Corporate Credit Rating for BIOVALLEY INVESTMENTS PARTNER S.P.A. (Affirm)

modefinance published the Solicited Corporate Credit Rating of BIOVALLEY INVESTMENTS PARTNER S.P.A. on the CRA website and the rating assigned to the entity is B1 (Affirm). The analysis revealed it is an adequate company with average capability of repaying financial obligations and it is little affected by adverse economic scenarios.

The Company BIOVALLEY INVESTMENTS PARTNER S.P.A. (abbreviated as “BIP S.P.A.”, or hereinafter referred to as the “Company”) is an enterprise part of an integrated industrial group, founded in 2016 and specialized in sale of products and services. In particular, the Group invests in the BioHighTech sector (BioMed, BioTech and Pharma, BioICT), in innovative companies operating in life sciences, medicine and digital markets.

The company BIOVALLEY INVESTMENTS PARTNER S.P.A. presents an "adequate" economic-financial situation at the consolidated level, characterized by capitalization that remains solid and by an adequate financial balance. On the other hand, profitability continues to be the area of analysis in the greatest distress. Looking at the cash flows produced by the Company, it is possible to notice an overall reduction in liquidity, with the absorption of resources operated by working capital having a decisive impact on operations. Moreover, the Company demonstrated an appreciable balance between resources raised from the financial system and investments made.

The Bank of Italy's Central Credit Register confirms the absence of financial stress in the self-liquidating and revocable lines, while the punctuality in payments along the maturity lines is guaranteed. The Company's operations concern services in the field of BioHighTech, within which it operates both by marketing products and services and investments in innovative companies active in contiguous markets. In addition, since 2019, BIP S.P.A. has been recognized as an "Innovative SME" by the Ministry of Economic Development.

The corporate administration appears to be under the control of an administrative body having a collegial form, composed of several figures from outside the ownership; the control body also have a collegial form. The corporate structure turns out to be rather articulated, although controlled by two different companies control the majority of shares, while the Company holds several shareholdings, minority and otherwise. It is also important to point out that no negatives have been found in the Company, shareholders or members of the administrative body.

When compared to the reference sector, the Company presents a very solid positioning in terms of both size and capitalization, while the ROE content sees it positioned below the sector median. The reference peer group expresses increasing indicators of solvency, but such that it can be considered adequate, as well asthe sector’s financial balance. Again, the peer group shows a declining ROE during 2021, but broadly sufficient.
Finally, of particular importance is constant and careful monitoring of the macroeconomic framework, within which economic growth is also estimated for the coming years: however, this could be thwarted by recent geopolitical tensions.

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 N. 1060/2009 and following amendments.

The present rating is solicited, and 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 here.

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 here. 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 not a buyer of ancillary services provided by modefinance (credit risk software). 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 – Christian Raimondo (Rating Analyst)
christian.raimondo@modefinance.co

Assistant Analyst – Fabio Politelli (Rating Analyst)
fabio.politelli@modefinance.com

Responsible for Rating Approval – Pinar Dilek (Rating Process Manager)
pinar.dilek@modefinance.com