Solicited Corporate Credit Rating for EGOGREEN SRL: B1- (First Issuance)
modefinance published the Solicited Corporate Credit Rating of EGOGREEN SRL on the website and the rating assigned to the entity is B1- (First issuance). The analysis revealed it is a company with adequate economic and financial situation, capable of facing adverse economic conditions in the medium and long term.
EGOGREEN S.R.L. is a company that specializes in supplying energy and gas. Recently, it has been accredited as a Dispatching User (UDD) for both the electricity and natural gas markets. Founded in 2020, the Company has developed a commercial strategy focused on establishing a network of physical stores. This strategy aims to enhance customer loyalty by prioritizing high-quality service and providing personalized, effective assistance.
Key Rating Assumptions
The Company's overall economic and financial situation is adequate, showing a gradual improvement in the balance between its own resources and external funding in terms of solvency. Additionally, the level of debt to credit institutions is contained. The financial exposure is manageable and sustainable, with a good balance between loans and short-term funding sources. The management of credit lines has proven to be effective.
In FY2023, the improvement in operating margins resulted in higher returns on both capital employed and equity, indicating a positive level of profitability overall. The business volume in FY2023 was slightly higher than the previous year's, even with the substantial drop in average energy prices. A significant increase in the volumes handled is expected for 2024.
EGOGREEN S.R.L. has a governance and control structure made up of single-member bodies, appropriate for the activities undertaken and the current size of the company.
When compared to its reference peer group, the company stands out for its positioning in terms of turnover and solvency. In the profitability area, it ranks above the 80th percentile, reaching particularly high levels.
The peer group demonstrates an ongoing improvement in capitalization, which is adequate overall, along with balanced financial leverage. Profitability levels in the sector are satisfactory.
The fundamentals of the energy industry have improved due to the stabilization of gas and energy prices, along with a reduction in their volatility compared to the peaks observed in 2022. However, significant concerns persist regarding potential negative developments within an increasingly unstable global geopolitical context. The Italian economy is projected to experience moderate growth in 2024, with more favorable prospects for the subsequent two years.
Sensitivity Analysis
In the following table, the addressing factors, actions or events that could lead to an upgrade or a downgrade are summarized:
Important
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 purchases ancillary services provided by modefinance (preliminary rating). modefinance ensures that such situation does not imply a conflict of interest in the issuance of the present credit rating.
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.
Contacts
Head Analyst - Stefano Chirsich, Rating Analyst
stefano.chirsich@modefinance.com
Responsible for Rating Approval - Pinar Dilek, Rating Process Manager
pinar.dilek@modefinance.com