Solicited Corporate Credit Rating for NWG ENERGIA S.P.A. SOCIETÀ BENEFIT: A3- (Upgrade)
modefinance published the Solicited Corporate Credit Rating of NWG ENERGIA S.P.A. SOCIETÀ BENEFIT on the CRA website and the rating assigned to the entity is A3- (Upgrade). The analysis revealed that the Company has a strong capability to fulfill its financial obligations.
NWG ENERGIA S.P.A. SOCIETA’ BENEFIT operates in the national free electricity market and has been committed to provide its end customers energy supplies exclusively from renewable sources since its establishment in 2014, thus showing particular attention to the environmental sustainability. In 2016, the Company expanded its corporate purpose to include not only profit-making activities but also common interest purposes and it became, in the same year, Italy's first energy B-Corp.
Key Rating Assumptions
NWG ENERGIA S.P.A. SOCIETA’ BENEFIT demonstrates a satisfactory economic and financial situation. The solvency area shows a good improvement in capitalization, whereas the increase in financial debt remains largely sustainable. The financial balance is adequate, with the current ratio above one. Concerning profitability, the significant expansion of operating margins led to an appreciable improvement in the indicator’s values.
The management of credit lines appears correct, with punctual payments for loans and long-term debts, whereas the utilization of self-liquidating risks and overdraft facilities risks appear well-managed. Cash flow from operations and newly contracted loans adequately support investments and led to a significant increase in cash and cash equivalents.
Regarding governance, the Company has a board of directors flanked by a board of statutory auditors, whereas the auditing of accounts has been entrusted to a specialized company. In 2022, the Company adopted the Organizational Model pursuant to Legislative Decree 231/2001 and appointed a Supervisory Board. NWG ENERGIA S.P.A. SOCIETA' BENEFIT, which holds 20 percent of its own shares and has no holdings in other companies, has a clearly identifiable group structure, with control traceable to the two founding shareholders of NWG ITALIA.
The Company’s positioning appears solid in terms of size and sufficient in terms of solvency compared to the reference peer group; profitability is, instead, below the 50th percentile. The peer group demonstrates an overall sufficient solvency level, whereas the liquidity and profitability indicators appear adequate.
The energy sector in Italy holds considerable strategic importance and has been significantly impacted by recent geopolitical tensions. The strategy of diversifying supply sources has contributed to the reduction of energy commodity prices in recent months. The medium/long-term outlook is currently uncertain but shows signs of appreciable recovery.
Sensitivity Analysis
In the following table, the addressing factors, actions or events that could lead to a rating upgrade or a downgrade are summarized:
Important
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.
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 – Stefano Chirsich (Rating Analyst)
stefano.chirsich@modefinance.com
Responsible for Rating Approval – Pinar Dilek (Rating Process Manager)