Corporate Credit Rating 2023 for INNOVATIVE-RFK SPA: A3 (Upgrade)

modefinance published the review of the Solicited Corporate Credit Rating of INNOVATIVE-RFK S.P.A. on the website. The rating assigned to the entity is A3 (Upgrade). The analysis revealed that the company's capacity to meet its commitment on financial obligations is strong.

Innovative-RFK is an investment company founded in 2017 by the same partners of Red-Fish Kapital, a company that has long been active in the field of private equity investments. The investment target of I-RFK consists of innovative start-ups and SMEs, or companies that can be transformed into innovative ones according to current regulations, and that demonstrate a solid profitability profile in terms of marginality, turnover growth and cash generation. I-RFK positions itself as an investment partner through the acquisition of minority shares, concurrently offering its expertise, network and capital, thus increasing SMEs’ and start-ups’ value and guiding them towards a listing on AIM Italy stock exchange or another Growth Market SME.

During 2022, along with its affiliated companies, INNOVATIVE-RFK generated an aggregated turnover of approximately €55 million. The company has also invested €10 million in 10 affiliated companies and holds an estimated market valuation of around €21,7 million, with a share price of €1,70 euros. Listed on the stock exchange, I-RFK has maintained strong solvency levels over the past year. A significant increase in profitability was driven by the divestment of a stake in June 2022.

With numerous holdings in various enterprises, most of which enjoy good economic and financial conditions, INNOVATIVE-RFK is governed by a board of directors, supported by a board of statutory auditors and an external auditing firm. The company demonstrates a solid positioning in all three evaluated areas: size, solvency, and profitability.

The sector of innovative start-ups and SMEs in Italy is experiencing a period of sustained growth, evidenced by increased numbers, turnover volumes, and employment rates. In 2023, a further increase in investments by Italian venture capital funds is expected, aiming to surpass €1,6 billion by the end of the. Thanks to solid management and a strategic focus on innovative investments, INNOVATIVE-RFK continues to strengthen its positioning in the sector of investments in high-innovation start-ups and SMEs.

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 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 a buyer of ancillary services provided by modefinance (credit risk software). modefinance ensures that such situation does not imply a conflict of interest in the issuance of the present credit rating.

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 - Stefania Latin, Rating Analyst
stefania.latin@modefinance.com

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