Corporate Credit Rating 2023 for INNOVATEC SPA: B1+ (Affirm)

Press release 18 August 2023

Solicited Corporate Credit Rating for INNOVATEC SPA: B1+ (Affirm)

modefinance published the Solicited Corporate Credit Rating of INNOVATEC S.P.A. on the 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 INNOVATEC S.P.A. is a holding company listed on Borsa Italiana, active in Clean Technology, i.e. the set of technologies that develop processes, products or services useful to negative environmental impact by improving energy efficiency, using sustainable resources or undertaking environmental protection activities. The Company was founded in 2013 and deals with the development of energy efficiency projects, products and services offered to other companies. In addition, the Company is active in the field of renewable sources and the construction and management of plants for the production of electricity from renewable sources. 

Key Rating Assumptions

The Company confirms a balanced economic and financial situation, characterized by a steady growth in investments. The balance between current assets and current liabilities is confirmed as adequate, while profitability levels appear sustained. The cash flow dynamics have notably been affected by substantial investments made during the year, reflecting the consistent strategic leverage employed by the company’s management. Within operational management, there's an increase in the working capital burden, stemming from the accumulation of operational credits related to Eco-bonus activities.

The governance and control structure is in line with best practices, while the corporate structure, although articulated, is clear in its roles.

The Company's positioning compared to the relevant peer group is suitable in terms of size, while the performance in terms of profitability appears robust. As far as solvency is considered, the Company ranks below the industry median, indicating a weak performance. The peer group displays a consistent decrease in solvency indicators throughout the examined period, culminating in a strong sectoral equity endowment. The financial balance within the sector seems sound, with the current ratio historically above unity. The sector ROE appeared to slightly decline during 2022, but on an adequacy dimension.

The macroeconomic outlook for Italy foresees modest growth in 2023, accompanied by rising rates, inflation and an unfavorable economic environment, which will all contribute to uncertainty. However, the projected data could still be revised upwards.

Sensitivity Analysis

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.

The present rating is solicited and is 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 at

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 at

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 a buyer of ancillary services provided by modefinance (credit risk software). modefinance ensures that such situation does not imply a conflict of interest in the issuance of the present credit rating.

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

Responsible for Rating Approval - Pinar Dilek, Rating Process Manager