Corporate Credit Rating 2025 for ITALIA POWER SPA: B1+ (Affirm)

modefinance published the Solicited Corporate Credit Rating of ITALIA POWER 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.

ITALIA POWER S.P.A. is an Italian energy company founded in 2016 and, during its first six years of operation, developed significant diversification, expanding its business into energy efficiency, green mobility products, mobile telecommunications, and clothing. 

ITALIA POWER S.P.A. shows improving solvency compared to the previous financial year, together with a decrease in financial exposure. Liquidity management remains adequate, while profitability, although lower than the prior year, remains at an overall satisfactory level.

Regarding corporate governance, the company maintains a governance and control structure with a collegial administrative body, subject to oversight by the Board of Statutory Auditors. It has adopted the organizational model pursuant to Legislative Decree 231/2001 and appointed a single-member supervisory body. The company structure is relatively straightforward: the shareholding consists of two limited liability companies (SRLs), both linked to two members of ITALIA POWER’s Board of Directors.

In terms of size, ITALIA POWER S.P.A. shows a decline compared to the previous year, although it remains at an adequate level. Solvency has improved, also reaching a sufficient level, while profitability has declined compared to the prior financial 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 remain costly 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 reductions in Russian gas through new terminals 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, reflecting continued weakness in manufacturing and a slowdown in the services and construction sectors. However, these sectors showed slight expansion, partly supported by the National Recovery and Resilience Plan (PNRR). Domestic demand was constrained by slower household spending, while investment conditions remain unfavorable. In autumn, Italian goods exports were affected by a sharp decline in global demand, and going forward, protectionist policies announced by the new U.S. administration are expected to negatively impact 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 2025–2027.

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 did not buy any ancillary service 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 - Tommaso Viola, Rating Analyst
tommaso.viola@modefinance.com

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