Solicited Corporate Credit Rating for ETC INVEST SPA: A3- (Affirm)
modefinance published the Solicited Corporate Credit Rating of ETC INVEST SPA on the website and the rating assigned to the entity is A3- (Affirm). The analysis revealed that the company's capacity to meet its financial obligation is strong.
ETC INVEST S.P.A., the holding company of the multinational Italian group “Export Trading Cooperation” (ETC), is a joint-stock enterprise that provides consulting services in project finance and trade finance with an exclusive operational focus on African markets, directly and through the Group's subsidiaries. The Company is specialized in Trade Finance and Supply Chain activities, through which it supports interchanges with Sub-Saharan African countries and investment projects. Since its foundation, the Company has pursued an internationalization process through the creation of representative offices, subsidiaries and funds across Europe and Africa, including the Regional Bureau Africa based in Cotonou (Benin). Moreover, as an active member of SWIFT (Society for Worldwide Interbank Financial Telecommunication), the Group facilitates interbank financial messages between European and African financial institutions. Thanks to its direct and indirect presence in Africa and its combined expertise in trade finance and supply chain management, the ETC Group has become the leader and main reference of banks and industrial/commercial groups as far as the management of supply and investment projects in Africa is concerned, in sectors that range from agribusiness to industry, but also from transport to green energy.
Key Rating Assumptions
The company was established in 2016, but its operational activity began in 2012. Over the years, the ETC Group pursued a process of internationalization and reorganization, changing its legal form into a joint-stock company and improving its operational and governance structure. The Group has grown also thanks to the entry of new and important shareholders. No black records have been found.
The corporate structure is clear as far as roles and responsibilities are concerned. In fact, from 2021, Monte Paschi Fiduciaria S.p.A. retains full control of the Group, while the two founding partners, who are also part of the Board of Directors, still hold minority stakes. The administrative and control collegial bodies of the company are flanked by the activities of an independent auditing company and of an independent supervisory body.
The Group, which also includes two Cameroonian companies, presents also in 2022 a sufficient economic-financial situation. The Group’s report released by the Italian Central Credit Register doesn’t show any critical issues and reveals good management of maturity and overdraft risks.
The peer group keeps on presenting balanced indicators of solvency, liquidity and profitability.
The Italian management consulting sector continued to grow in 2022 and a further expansion is expected also in 2023. The value of greenfield projects globally announced in Africa almost quadrupled in comparison to the previous year and the number of projects rose, too. In contrast, international project finance operations in Africa showed a decline, despite the increase in projects number.
The economic growth in Africa’s larger economies is struggling to gain momentum and their overall performance is expected to dissatisfy in the short-to medium-term. On the other hand, emerging African countries and in particular commodity exporters will record strong growth rates, benefitting from strong demand and high prices for their products and from Europe's search for alternative energy sources to reduce reliance on energy supply from Russia. Inflation remains high and many African states will experience exchange rate pressures, exacerbating financing issues for households, businesses, and governments. Economic instability is expected, coupled with security concerns, since Africa remains the region most affected by armed conflicts.
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 1060/2009 and following amendments.
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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.
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No amendments were applied after the notification process.
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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.