Corporate Credit Rating 2025 for NEWATT SRL: A3+ (Upgrade)

modefinance published the Solicited Corporate Credit Rating of NEWATT S.R.L. on the website and the rating assigned to the entity is A3+ (Upgrade). The analysis revealed Company’s capacity to meet its commitment on financial obligations is strong.

NEWATT S.R.L., founded in 2015, is an active player in the energy sector. I It operates as a supply chain partner for small Italian energy resellers and energy producers, concentrating its business in Northern Italy, while also expanding into foreign markets over the past year. The increase in small operators has presented a market opportunity for the Company, which supports resellers though services such as supply chain management (supply balancing and portfolio management), distribution management, transmission and dispatching, and access to regulated and over-the-counter (OTC) markets. Additionally, the Company continuously monitors merger & acquisition (M&A) opportunities, which have been instrumental in shaping the current Group. 

NEWATT Group confirms a sound overall economic and financial position. Economic performance is characterized by solid profitability, supported by a further increase in revenues (€163 million, up from €150 million), which translated into a strengthening of EBITDA (€12 million; +16%) and net profit (€8 million; +37%), benefiting also from lower depreciation and financial charges.

In 2024, the Group maintained a sound capital structure (leverage ratio of 1.80) and a balanced financial position. The net financial position remained positive, with a net cash balance of €1.5 million. Gross financial debt also recorded a significant decrease (€5.25 million; -50%).

Regarding cash flow management, in 2024 the Group generated sufficient self financing to maintain a positive operating cash flow, despite the absorption of resources driven by working capital. Operating cash flow fully financed new investments, mainly related to the acquisition and renovation of the new headquarters.

The decrease in cash and cash equivalents is therefore attributable to repayment of financial debt and equity distributions.

The governance and control system remains adequate, with a board of directors that includes Newatt shareholders, supported by a sole statutory auditor. In July 2024, Dr. Massimiliano Carpegna joined the board and was appointed Chief Executive Officer with broad managerial and commercial authority, bringing twenty-five years of industry experience. The Company continues to operate without an external supervisory body. The Group’s structure is continuously evolving and expanding, though the relationships among its various companies are clearly defined.

Compared with the sector peer group, Newatt shows a substantial and growing scale, supported by the increase in business volumes, positioning the Group among the most significant operators in the sector at the national level. Profitability remains solid, and its solvency position is above the peer median, thanks to a balanced mix of funding sources and sustainable financial leverage. The peer group as a whole also shows a generally positive performance, with a balanced capital structure and financial leverage gradually improving. The financial position is sound, and the economic performance is noteworthy.

The fundamentals of the energy sector in Italy have improved thanks to the stabilization of gas and electricity prices, with reduced volatility compared to the peaks of 2022. However, the increasingly strategic role of LNG (liquefied natural gas) in the energy mix, which represented 42% of EU gas imports in 2023, up from 20% in 2021, as a substitute for Russian pipeline gas, results in higher procurement costs and exposes Italy to the risk of potential price increases due to global market dynamics, including rising gas demand in Asia and changes in U.S. shale gas extraction policies.

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 - Elisa Graffi, Rating Analyst
elisa.graffi@modefinance.com

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