Corporate Credit Rating 2025 for E.SMART SRL: B1- (First Issuance)

modefinance has published on its website the Corporate Credit Rating (Solicited) of E.SMART S.R.L., assigning a rating of B1- (First issuance). The analysis highlights that the company has an adequate financial position, appearing capable of withstanding adverse economic conditions in the medium and long term.

E.SMART is an Italian company active since 2005 in the sale of electricity and natural gas, with a strong focus on innovation, sustainability, and service quality. The company positions itself as a key energy partner for residential and business customers, offering customized solutions and competitive rates. Operating nationwide, it has a strong presence in Northern Italy, particularly in Milan.

The Company maintains a solid solvency position, with key indicators remaining broadly stable compared to the previous year, and a negative net financial position. Liquidity management, while showing some signs of deterioration, remains appropriate. Despite an improvement in operating margins as of June 2024, the Company reports a decrease in net income compared to the same period in 2023, mainly due to rising interest expenses.

The Company is governed by a collective administrative body, while internal control functions are entrusted to a sole statutory auditor. E.SMART has a clearly identifiable corporate structure, with FEN ENERGIA S.P.A. holding a 75% majority stake. The remaining 25% is held by Mr. Guido Ghirardi, who also serves as Chairman of the Board of Directors.

In terms of size, the Company holds a strong position relative to its peers, particularly in revenue and key solvency indicators. However, in terms of profitability, E.SMART ranks below the median of its peer group.

The peer group as a whole demonstrates adequate capitalisation over the period under review, with leverage and financial leverage indicators improving compared to 2022. Financial equilibrium is deemed adequate, and Return on Equity (ROE) is solid and slightly improved from the previous year.

In 2024, the Italian energy market returned to more stable conditions, with electricity and gas prices declining due to increased renewable energy production, lower consumption, and favorable weather conditions. However, prices remain above pre-crisis levels, primarily because of continued reliance on fossil fuels, which are more expensive and volatile. Renewable sources, particularly solar and hydroelectric power, accounted for 50% of electricity production. To support this energy transition, Terna launched €2.3 billion in strategic infrastructure investments and introduced MACSE, a new mechanism to incentivize energy storage, with initial auctions scheduled for 2025. The EU increased the share of LNG in its gas imports (from 20% in 2021 to 38% in 2024), offsetting the reduction in Russian gas through new terminals such as those in Piombino and Ravenna. Gas storage reached record levels, with 90% of winter 2025/26 capacity already allocated by April 2025. Nonetheless, structural vulnerabilities remain, including dependence on imports and exposure to geopolitical and climate-related risks, which require ongoing monitoring.

From a macroeconomic standpoint, economic activity in Italy remained subdued in Q4 2024, affected by continued weakness in manufacturing and a slowdown in the services and construction sectors. These sectors, however, showed slight expansion, partly supported by the National Recovery and Resilience Plan (PNRR). Domestic demand was constrained by slower household spending and persistently unfavorable investment conditions. In autumn, Italian goods exports were hindered by a sharp decline in global demand, and going forward, protectionist policies announced by the new U.S. administration are expected to negatively affect exports to the U.S. market. According to the latest projections from the Bank of Italy, GDP grew by 0.5% in 2024 and is expected to expand at an average annual rate of around 1% over the 2025–2027 period.

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 http://cra.modefinance.com/en

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 http://cra.modefinance.com/en/methodologies.

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 company purchased ancillary services from modefinance (preliminary rating). Modefinance guarantees that this purchase of ancillary activities does not constitute any conflict of interest.

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 people 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 ongoing monitoring until withdrawal.

Head Analyst - Tommaso Viola, Rating Analyst
tommaso.viola@modefinance.com

Responsible for Rating Approval - Pinar Dilek, Rating Process Manager
pinar.dilek@modefinance.com