Corporate Credit Rating for KEELT GROUP S.P.A.: B1+ (Affirm)

Press release 14 July 2022

Solicited Corporate Credit Rating for KEELT GROUP S.P.A.: B1+ (Affirm)

modefinance published the Solicited Corporate Credit Rating of KEELT GROUP S.P.A. on the CRA 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.

KEELT GROUP S.P.A. is a company based in Marcianise (Caserta) and active in the industry of services related to information technology and retail trade of products via internet. Founded at the end of 2018 by Mr. Alessio Damiano, the Company is specialized in the online sale of watches through the "kechiQ" marketplace, and it has also planned remarkable investments to establish physical boutiques in major cities around the world.

Key Rating Assumptions

The Company KEELT GROUP S.P.A. shows an “adequate” economic and financial situation, characterized by the deterioration of the solvency area due to increased financial exposure needed to finance investments, while cash management appears adequate. Increased sales and careful cost management enable the company to raise margins and maintain a satisfactory profitability. 

The cash flows analysis points out how operations are unable to finance investment activities due to the absorption of resources operated by working capital. The necessary liquidity is raised through a significant increase in financing activity, which also allows the Company to set aside a valuable cash reserve. In terms of governance, the Company has a Board of Directors flanked by a collegial control body. The corporate structure is easily identifiable, and the control is attributable to the incubator and accelerator ELTEIDE S.P.A.. 

In terms of size, KEELT GROUP S.P.A. presents a well positioning, above the industry median and such that it can be considered adequate. Compared to the previous year, the Company is affected by the increase in financial exposure and obtains, with reference to solvency, a lower positioning than the median of the companies in the reference sample. Finally, looking at profitability, the Company ranks just below the industry median but still maintaining a sufficient positioning. 

Analyzing the performance of the peer group, leverage and financial leverage indicators are solid and further improving. Liquidity indicators are adequate, while profitability shows a significant improvement, reaching a solid dimension. The watch market is in excellent shape, as sales growth in Italy in 2021 was +23% over the previous year, while in the first quarter of 2022 domestic sales of Swiss Made watches posted an encouraging +17.8%, rewarding especially the high-end market. 

In terms of market structure, the physical distributor network remains the most relevant channel, even if there is a gradual shift of sales from physical boutiques to digital marketplaces which is being observed. The macroeconomic outlook looks positive but still impacted by the growing uncertainty of recent months: geopolitical tensions and rising inflation are likely to negatively affect economic growth.

Sensitivity Analysis

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 issued by modefinance under EU Regulation N. 1060/2009 and following amendments.

The present rating is solicited, and 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 here.

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 here. 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 (credit risk software). 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 – Stefano Chirsich (Rating Analyst)

Assistant Analyst – Stefania Latin (Rating Analyst)

Responsible for Rating Approval – Pinar Dilek (Rating Process Manager)