Corporate Credit Rating 2024 for NAZIONE VERDE SRL: B1 (Upgrade)

modefinance has published on its website the Corporate Credit Rating (Solicited) of NAZIONE VERDE S.R.L., assigning the rating of B1 (Upgrade). The analysis shows that the subject has an adequate economic and financial situation and is able to cope with adverse economic conditions in the medium and long term.

NAZIONE VERDE S.R.L. is a single-shareholder company established in 2017 with the aim of investing in the Green Economy and in the energy redevelopment of public and private real estate assets. The company's management intends to consolidate its position as a player in the sector while diversifying and expanding its business. With this in mind, the Company has already launched significant investments aimed at expanding its portfolio of tangible assets, as well as creating new subsidiaries that will play a fundamental role in the implementation of the renewable energy business, primarily photovoltaics. After a positive 2021, 2022 also confirmed the growth trend in business volume, with production value increasing by +93% YoY, reaching 26.9 million euros.

The main indicators of solvency for NAZIONE VERDE show a general improvement compared to the previous year. Overall, liquidity management appears adequate, as does the Company's profitability condition at the end of the 2023 financial year.

Nazione Verde is diversifying into renewable energy through the sale of photovoltaic systems and the planning of other projects focusing on photovoltaics. The commercial network is acquiring land for Renewable Energy Communities, and a new company has been established for an urban redevelopment project in Rome, securing a new operational headquarters in the Trieste district.

The peer group shows a sufficient level of capitalization, although it has slightly declined at the end of 2023. Financial leverage is steadily decreasing, remaining at balanced levels. Over the past four years, the group has maintained both the current ratio and the quick ratio above one, indicating a good financial balance and effective management of immediate liquidity. The profitability of the sector is growing, reaching a strong level in 2023.

Investment in the construction sector increased in 2023 compared to 2022 but is expected to decline in 2024 due to an unfavorable macroeconomic environment and the end of tax incentives. Domestic real GDP growth will be dampened in 2024 by tight financial conditions, moderately high inflation impacting household spending, and a weak external environment, with US and global growth slowing significantly. Given the risk of political instability and the limited prospects for economic reform, the EIU remains skeptical about the medium-term growth potential of the Italian economy.

In the following table, the addressing factors, actions or events that could lead to an upgrade or a downgrade are summarized: 

This Corporate Credit Rating is published by modefinance in accordance with EU Regulation No. 1060/2009 and subsequent amendments.

This rating is solicited and is based on both public and private information. The assessed company and/or related parties have provided all private information used herein. ModeFinance had access to certain private and confidential financial documents and information of the analyzed company and/or related parties. The solicited and unsolicited ratings issued by modefinance are comparable in terms of quality, as the solicitation status has no effect on the methodologies used. For more detailed information, please refer to the following link: https://cra.modefinance.com/it

This Corporate Credit Rating has been issued on the basis of the MORE 2.0 Methodology and the MORE 1.0 Methodology.

For information on historical default rates of Corporate Credit Ratings, please refer to the ESMA Central Repository at the following link https://cerep.esma.europa.eu/cerep-web/ and to ESMA's European platform. https://registers.esma.europa.eu/publication/searchRegister?core=esma_registers_radar.

ModeFinance adopts the following definition of default: a company in bankruptcy, in non-voluntary liquidation, in receivership, or that is insolvent with respect to an expired financial commitment.

The quality of the information available for the evaluation of the rating of the company analyzed was judged by modefinance as satisfactory. In accordance with the Credit Rating Agencies Regulation, this rating has been transmitted to the company under assessment prior to its publication, so that it can identify any clerical errors in the report.

No changes have been made since the conclusion of the notification process.

Modefinance provided the assessed company with the ESG Rating auxiliary service. Modefinance guarantees that the provision of ancillary services does not result in a conflict of interest with its rating activities.

This rating is issued by modefinance independently. The analysts, members of the rating team involved in the process, modefinance Srl, the members of the board of directors and the shareholders do not present any conflicts of interest, either real or potential, with the company being assessed or with related third parties. Should a potential conflict of interest emerge in relation to the persons listed above in the future, modefinance will provide the necessary information and, if necessary, will proceed to withdraw the rating.

This credit rating represents modefinance's opinion on the general health of the company being assessed and should be relied upon to a certain extent. The rating issued is subject to monitoring and review until it is withdrawn.

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

Assistant Analyst - Fabio Politelli, Rating Analyst
fabio.politelli@modefinance.com

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