Solicited Corporate Credit Rating for NAZIONE VERDE S.R.L.: B1- (Affirm)
modefinance published the Solicited Corporate Credit Rating of NAZIONE VERDE S.R.L. on the CRA website and the rating assigned to the entity is 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.
NAZIONE VERDE S.R.L. is a company founded in 2017 with the aim to invest in Green Economy and in the energetic redevelopment of public and private real estate assets. The company management intends to consolidate its position as a player in the industry while diversifying and expanding its business. With this in mind, the Company has already started major investments aimed at expanding the endowment of tangible assets, as well as founding the new subsidiaries that will play a role in the implementation of the renewable energy business, primarily the photovoltaic one. After a positive 2021FY, 2022FY confirmed the growing trend in business volume, with the turnover increasing by +93% YoY, standing at 26.9 mln euros.
Key Rating Assumptions
The Company NAZIONE VERDE S.R.L. presents an overall sufficient economic and financial situation. FY 2022 confirmed the growing trend in business volume, which marked a +21% YoY increasing revenues to 23.4 mln euros. Despite this, a significant increase in production costs (+179% YoY) caused a decrease in operating margins and net income (2.88 mln euros). Still, profitability indicators confirm fully adequate values. On the liquidity front, the Company shows balanced management both in static terms and in the cash flow dynamics. The analysis of cash flows shows how the Company - unlike in 2021 – in 2022 has been able to generate a positive and conspicuous operating cash flow (1.8 mln euro) which, together with the new financial resources arrived from the banking channel (3.75 mln euro), supported the investments aimed at expanding the endowment of tangible assets and founding the new subsidiaries. These new companies will play a key role in the development of the renewable energy business, primarily the photovoltaic one. Finally, regarding solvency, the Company shows a sufficient capitalization (6.68 mln euros); although the net debt increased in 2022, it still appears sustainable in relation to both shareholders' equity and EBITDA (4.86 mln euros). In addition to this, the Bank of Italy's Central Risks Report shows the correct management of credit lines.
The Company was founded in 2017 and its management is currently focused on consolidating its role as a key player in the implementation of eco-bonus and sisma-bonus incentives, while diversifying and expanding its operations. In 2022, the Company strengthened its governance and control structure adding an administrative body and a supervisory body, both in a collegial form, and adopting the organizational model ex- 231/2001. The group structure appears lean: the control is attributable to five different physic persons, operating through the parent company NV Holding S.r.l. (69.92%). The Company holds 100% of the shares of six companies established in 2022 to develop the renewables business, as mentioned above. There are no black records regarding the Company, the shareholders, or the members of the governing body.
The Company ranks better than the industry median both in terms of size and profitability, while has a poor positioning in terms of solvency. However, it is worth mentioning that the Company's leverage improved in FY2022 due to the strengthening of capitalization. The sector peer group manifests an adequate level of solvency and a good financial balance, while profitability grew during the last fiscal year.
The construction sector and, more generally, the energy redevelopment of buildings is experiencing a period of recovery, although some critical issues have emerged and undermine the positive trend. On the other hand, the Italian macroeconomic forecasts envisage a modest growth in 2023, characterized by rising rates and inflation. However, this situation is expected to be followed by a period of growth above pre-pandemic levels. For this reason, macroeconomic forecast data could be revised upwards.
In the following table, the addressing factors, actions or events that could lead to a rating upgrade or a downgrade are summarized:
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