Corporate Credit Rating for SH ENERGIE SRL (Affirm)

Press release 10 October 2023

Corporate Credit Rating for SH ENERGIE SRL: B1- (Affirm)

modefinance published the Solicited Corporate Credit Rating of SH ENERGIE S.R.L. on the website and the rating assigned to the entity is B1- (Affrim). The analysis revealed it is an adequate company with average capability of repaying financial obligations and it is little affected by adverse economic scenarios.

SH ENERGIE S.R.L. was founded as a consequence of the requirement to separate the activities of electricity and natural gas production, distribution, and sales, as mandated by the current legislation. The company began operating in the electricity and natural gas sales sector in 2005, in response to the opening of energy markets. Specifically, within the group, SH ENERGIE focuses on the development and management of sourcing and generation activities of renewable energy in Italy. During the period under consideration, the company continued to primarily operate in the sale of electricity and gas, with a focus on large customers and group-affiliated companies. Additionally, it worked on optimizing purchases through a gradual increase in direct sourcing from renewable energy producers.

Key Rating Assumptions

The company's financial situation is evaluated as "satisfactory." In particular, a significant strengthening of the net worth has been noted, while the increase in financial items, although present, does not pose a threat to financial stability due to the debt. Liquidity management remains adequate, with indicators remaining stable. The company's profitability is stable and satisfactory.

The company has demonstrated solid treasury management through efficient operational coordination. It should be noted that, following the change of the company's name, a modification was made in the administrative body, with the appointment of a new sole administrator.

In the context of its operational activities, SH ENERGIE has a clear focus on the development and management of sourcing and generation activities of renewable sources in Italy. The company is gradually expanding direct sourcing from renewable energy producers and is investing in the creation and management of renewable energy production facilities. In terms of size, the company ranks among the largest entities in the sector in relation to turnover. Regarding solvency, it is slightly below the sector median but still at a sufficient level. Profitability maintains a good level of performance.

Analyzing the peer group in the energy sector, a trend of decreasing leverage emerges, with a level of financial indebtedness remaining sustainable. Liquidity indicators consistently show adequate values, while in terms of profitability, there is a slight increase in the sector's Return on Equity (ROE).

The energy sector in Italy holds significant strategic importance and is subject to significant changes over time. National government strategic forecasts sometimes clash with recent geopolitical tensions, but the country is striving to diversify its sources of energy supply. In 2023, over 40% of the energy has been generated from renewable sources, marking a positive evolution. In the medium to long term, the outlook appears to be on a commendable upswing.

Eventually, the Italian macroeconomic outlook forsees modest growth for 2023, with rising interest rates and an unfavorable economic environment. However, recent political elections have resulted in a strong majority that could enable the current government to complete the post-pandemic recovery plan, with potential upward revisions to macroeconomic forecasts.

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 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.


Head Analyst – Stefania Latin (Rating Analyst)

Responsible for Rating Approval – Pinar Dilek