Corporate Credit Rating for GIORGIO ARMANI S.P.A.: A3+ (First Issuance)

modeFinance published on its CRA website the Corporate Credit Rating (first issuance) of GIORGIO ARMANI S.P.A. and the rating assigned to the entity is A3+.

The company has a good capability of meet its financial obligations. The high capitalization ensures low dependence on possible adverse macroeconomic conditions.

The reasons that have driven this decision are:

• The Group shows a very good situation over the all considered period, with an extremely strong position in solvency and liquidity and a good profitability.
• Solvency is the strongest profile of the company, with a very high capitalization and financial indebtedness almost equal to zero and constantly improving in the analyzed period. Liquidity is high: current and quick ratio are at high and safe levels.
• The Group has improved management of net working capital and cash flows compared to previous years. The company owns equity and financial resources sufficient to withstand a period of downturn like the current one.
• The Group has a good profitability. In the past FYs, the profitability has always been very high, even if in 2015, turnover was up 4.6%, compared to 16% rise in 2014. This underlines a growth at a slower pace respect to the previous year and shows that the Group must deal with a tougher economic environment.
• For the present rating, the positioning of the company has been analyzed within its pertaining sector and main markets. In all considered areas (Solvency, Liquidity and Profitability) the company has registered values equal or stronger than median values of the peer group.
• As per the industry scenario, although it is expected a slight recovery in the sector for the second half of 2016, there are still many factors of uncertainty and instability. US market is still not picking up, Asian recovery is still weak and terrorism is a constant threat to tourism, going to affect the flow of tourists, from which industry derives 40% of its sales. This scenario might influence on the Company’s revenues, even if the Group is solid and capable of supporting the industry downturn.
• The Group has a worldwide presence with a very good brand reputation.

The present Corporate Credit rating is issued by modeFinance under EU Regulation N. 1060/2009 and following amendments.

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 this link.

A comprehensive description of the Methodologies used is available at this link.

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.

Chiara Di Piazza - Head Analyst
chiara.dipiazza@modefinance.com
+39 040 3756742

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

Pinar Dilek - Responsible for Rating Approval
pinar.dilek@modefinance.com
+39 040 3756740