Corporate Credit Rating 2025 for INNOVATIVE-RFK SPA: A3 (Affirm)

modefinance published the Solicited Corporate Credit Rating of INNOVATIVE-RFK S.P.A. on the website and the rating assigned to the entity is A3 (Affirm). The analysis revealed that the company has an adequate economic-financial situation with average capability of repaying financial obligations and it is little affected by adverse economic scenarios.

Innovative-RFK S.p.A. (“I-RFK” or “the Company”), founded in 2017 by Red Fish Kapital S.p.A., invests in highly innovative start-ups. Key holdings include majority stakes in Audio Technologies (biomedical, April 2023) and Abbrevia (business information, September 2023), for a total investment of €6.4 million. In light of the satisfactory performance of the portfolio companies and the corrective measures implemented during the year, management concluded that no impairments were required in FY24.

INNOVATIVE-RFK S.P.A. (hereafter I-RFK S.P.A.) presents a financial and economic position characterized by solid solvency and an adequate level of coverage for its fixed assets. Profitability was satisfactory in FY24, driven by capital gains from the disposals of Web al Chilo, MagillaGuerilla, and Red Raion. In FY24, I-RFK S.P.A.’s cash position decreased from €0.7 million to €0.1 million, a year-on-year decline of €0.5 million, due to a buyback plan aimed at gradually returning capital to investors. This operation was supported by cash flows from disposals of Web al Chilo, Red Raion, and MagillaGuerilla, recorded in the financial statements at approximately €1.7 million. These transactions produced capital gains exceeding €2 million. Looking ahead, Management plans to continue with targeted disposals to ensure satisfactory returns for shareholders and facilitate investor exits, given the Company’s limited market liquidity . As of June 30, 2025, the Company holds €1.8 million in cash, thanks to the proceeds from the sale of Hyntelo (€1.8 million, with a book value of €0.75 million), dividends received (€0.3 million), and the gradual recovery of receivables from Red Raion and Web al Chilo (€0.15 million). In Q3 2025, the Company sold its stake in Websolute for a total of €2.2 million, receiving €0.5 million in cash upfront and the remaining €1.7 million in approximately 950,000 shares, which are planned to be liquidated as part of the investor exit in FY26.

The Company is listed on Euronext Access Paris and has a broad shareholder base, including private and institutional investors. Management is among the main shareholders, with Dr. Paolo Pescetto (former Chairman and founder of Arkios Italy S.p.A., RedFish Kapital S.p.A., and RedFish LongTerm Capital S.p.A., the latter listed on Euronext Growth Milan since June 2023) holding a 9.78% stake. The Company has a Board of Directors and a Board of Statutory Auditors, whose activities are supported by an external auditing firm.

The Company is below the 50th percentile in size, indicating a relatively small scale, but shows solid solvency and favorable leverage. Profitability improved in FY24, largely due to the €1.9 million capital gain from the exit of Web al Chilo. The peer group reflects healthy leverage and financial leverage, supported by strengthened equity and steadily improving profitability.

At the end of Q2 2025, Italy had 12,342 innovative start-ups, representing 3.08% of more than 400,000 active joint-stock companies. During the second half of 2025, the Guarantee Fund facilitated 492 operations, providing potential financing of approximately €79 million for innovative start-ups, of which roughly €40 million had already been disbursed. Financial statements for 2023 are available for 8,154 out of the 12,342 start-ups. The median production value is €41,000, significantly lower than the average of €208,000, indicating that most registered innovative start-ups are still in the early stages of development. This results in slightly negative profitability indicators . However, when focusing on profitable companies - which account for 44% of the total - ROI and ROE reach 11% and 20%, respectively, outperforming other joint-stock companies (ROI 6%, ROE 16%).

In the first quarter of 2025, the Italian economy posted moderate growth, supported by household consumption, which is underpinned by a stable labor market and rising real incomes. Investments remained weak, constrained by underutilized production capacity and tight financial conditions. Growth was driven by the services sector and NRPP linekd construction projects, while manufacturing showed signs of recovery but remained vulnerable to rising tariffs and geopolitical uncertainty. The Bank of Italy forecasts GDP growth of 0.6% in 2025, 0.8% in 2026, and 0.7% in 2027.

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 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 - Carmela Santomarco, Rating Analyst
carmela.santomarco@modefinance.com

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