Solicited Corporate Credit Rating for INNOVATIVE-RFK S.P.A.: B1+ (Upgrade)
modefinance published the review of the Solicited Corporate Credit Rating of INNOVATIVE-RFK S.P.A. on their website. The rating assigned to the entity is B1+ (upgrade). The analysis revealed that the company has average capability of repaying financial obligations, although possible adverse macroeconomic conditions or different management or strategies might impact on the capability of repaying their debt.
Innovative-RFK is an investment company founded in 2017 by the same partners as Red-Fish Kapital, an enterprise that has long been active in the field of private equity investments. The investment target of i-RFK is innovative Start-ups and SMEs with a solid profitability profile in terms of marginality, turnover growth and cash generation. i-RFK presents itself as an investment partner through the purchase of minority shares, while increasing SMEs and start-ups value and leading them towards a listing on AIM Italy stock exchange or other Growth Market SME.
Key Rating Assumptions
Founded in 2017 by Red Fish Kapital spa, i-RFK is an investment company specializing in high innovation content start-ups. During the financial year 2021, Innovative-RFK achieved new and important milestones and in August 2021 a so-called Charity Bond was issued through a debt crowdfunding campaign of the CrowdFundMe platform. From an economic and financial point of view, the company presents an adequate situation, characterized by a solid level of solvency, while profitability continues to appear limited, due to the still evident aftermath of the pandemic and the outbreak of the Russia-Ukraine conflict. This inevitably affected the profitability of i-RFK's investee companies. The analysis of cash flows shows how the company manages to maintain a certain cash margin thanks to its liquid funds. An analysis of the Central Credit Register shows no critical issues, as well.
The company is listed on Euronext Acces Paris and the main shareholder is Paolo Pescetto, a founding partner who holds 19.09% of the capital. As a holding company, i-RFK holds numerous shareholdings in various companies, most of which are in an adequate financial condition. Moreover, the company is administered by a Board of Directors, it has a board of statutory auditors and an external auditing company. The company's positioning compared to the reference sector remains adequate in terms of size and solvency; however, profitability can still be improved. The peer group expresses an adequate level of both general and financial debt, which is accompanied by good profitability. The sector relating to start-ups and innovative SMEs is growing steadily, both in terms of number and volume of turnover, and in terms of the workforce employed. The macroeconomic picture of Italy shows that the recovery in 2021 was generally in line with forecasts, with sustained economic growth that is likely to be confirmed in the coming years.
However, the conflict between Russia and Ukraine, with the consequent impact on energy and food prices, undermines the forecasts, especially as regards the maintaining of adequate economic growth, with domestic consumption likely to be affected by rising inflation, currently estimated at over 6%. The 2022 macroeconomic forecast data appear to be revised downwards compared to the estimates at the beginning of the year.
In the following table, the addressing factors, actions or events that could lead to a rating upgrade or a downgrade are summarized:
The present Corporate Credit rating is issued by modefinance under EU Regulation N. 1060/2009 and following amendments.
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