Corporate Credit Rating for GROUP UP SRL: B1- (Affirm)

modefinance has published on the website the Corporate Credit Rating (Solicited) of  GROUP UP SRL, assigning the rating of B1- (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.

GROUP UP, headquartered in Milan and established in 2020, operates as an operational holding company, providing managerial, administrative, and strategic coordination services to its subsidiaries. The controlled companies engage in integrated activities across the technical, consulting, and digital sectors, with a focus on the condominium and real estate markets. Services range from energy supply to document management, from plant maintenance to technical and organizational consulting, and include the development of software solutions for condominium management. The offering is further enhanced by services in the areas of safety, GDPR compliance, insurance, tax, environmental, and energy consulting, as well as representation and brokerage activities.

GROUP UP S.R.L. confirms a financial and economic situation with no particular critical issues, in line with the previous financial year. The Company shows a balanced capital structure (leverage = 0.32x) and a total absence of financial debt. On the profitability side, net income increased (from €1.41 million to €2.02 million), driven by financial income from subsidiaries (€2.06 million). The return on equity is adequate (28.95%). Finally, the financial balance is sound, supported by efficient management of the relationship between current assets and liabilities.
During the year, the company generated positive self-financing, only partially absorbed by changes in net working capital. Operating activities therefore generated sufficient cash flow not only to fully cover investments, but also to contribute to the increase in cash and cash equivalents at year-end. Overall, cash flow dynamics indicate a balanced financial year.

The shareholder structure consists of two individuals: Mr Marco Mazzocchi (also sole director) and Ms Valeria Mazzocchi. The administrative body is supported by an external statutory auditor. The Company, as a holding company, acts as the parent entity of a group of companies, four of which are wholly owned subsidiaries.

The Company shows an overall positive positioning within its industry peer group. Total assets are above the median of the reference group. In recent years, total assets have grown, driven in particular by financial fixed assets. In terms of profitability and solvency, the company is also positioned at adequate levels.
The industry sample shows an improvement in solvency ratios over the period analysed and is adequately capitalised. Financial indebtedness appears limited relative to equity. Overall, a solid financial balance emerges.
From a profitability perspective, however, the return on equity of the group is relatively modest.

The macroeconomic projections issued in March by the ECB for the euro area indicate that headline inflation will rise to 2.6% in 2026, mainly due to higher energy prices linked to the conflict in the Middle East, before stabilising at 2.0% in 2027 and 2.1% in 2028. Disruptions in commodity markets are weighing on real incomes and confidence, negatively affecting consumption and investment. In particular, annual real GDP growth is expected at 0.9%, 0.3 percentage points lower than the previous December projections, while for 2027 and 2028 it is forecast at 1.3% and 1.4% respectively. Over the medium term, the main driver of growth will continue to be domestic demand, supported by a stable labour market, planned public spending on defence and infrastructure, as well as ongoing digitalisation and the investment cycle driven by AI. On the external side, structural competitiveness challenges will lead to a continued loss of market share for the euro area. 

The current energy crisis highlights the need for an ecological transition to reduce dependence on fossil fuels. To enhance competitiveness and financial integration in Europe, it will also be essential to regulate and adopt the digital euro.

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 published 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 adopts the following definition of default: a company in bankruptcy, in involuntary liquidation, in controlled administration, or that is insolvent with respect to an expired financial commitment. 

The quality of the information available for evaluating the rating of the analyzed company has been 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.

Modefinance provided ancillary services  to the entity (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 - Elisa Graffi, Rating Analyst
elisa.graffi@modefinance.com

Responsible for Rating Approval - Giada D'Avenia, Rating Process Manager
giada.davenia@modefinance.com