Corporate Credit Rating 2023 for NEWATT S.R.L: A3 (Upgrade)

modefinance published the Solicited Corporate Credit Rating of NEWATT S.R.L. on the website and the rating assigned to the entity is A3 (Upgrade). The analysis revealed that the Company has a strong capacity to meet its commitment on financial obligations.

The company NEWATT S.R.L. was founded in 2015 and is an active player in the energy sector, within it acts as a supply chain partner of small Italian energy resellers and production operators, concentrating its business in Northern Italy.
The growth in the number of small operators has represented a market opportunity for the Company: it supports resellers though services such as Supply Chain Management (Supply Balancing and Portfolio Management), Distribution Management, Transmission and Dispatching, and access to regulated or OTC markets. In addition to above, the Company has been constantly monitoring Merger & Acquisition opportunities, which have been instrumental in the formation of actual Group. 

The Group presents an adequate economic and financial situation, characterized by solid levels of profitability, especially in terms of return on equity.

Regarding solvency, the company expresses a correct composition of financing sources, with residual exposure to the financial system. This is also related to good management of credit lines. The financial balance between current assets and current liabilities appears correct. From a dynamic point of view, the incidence of commercial receivables on current assets remains high.
The governance and control system is confirmed to be adequate, with a collegial form for the administrative body, flanked by an internal control body, having a monocratic form. The governance still lacks of an external control body. The group structure appears to be constantly changing, but the relationships between different companies are clearly defined.

In terms of size and profitability, the Company ranks above the 70th percentile in the distribution of comparable companies, while perfectly aligned with the 60th percentile is the performance related to solvency. The peer group shows an appreciable strengthening of its overall health with weak, but shrinking leverage values matched by a contained sector financial debt. 

The peer group’s financial balance appears healthy, while profitability is strengthening. The energy sector shows an appreciable recovery after the period of uncertainty experienced during the gas supply crisis, although the situation needs to be monitored and such as to reward the most vigilant companies. The economic growth appears modest in 2023, but macroeconomic data could be revised upward later in the year.

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 (private corporate rating). 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 - Christian Raimondo, Rating Analyst
christian.raimondo@modefinance.com

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