Corporate Credit Rating for NWG ENERGIA S.P.A. SOCIETÀ BENEFIT: B1 (First Issuance)

modefinance published the Solicited Corporate Credit Rating of NWG ENERGIA S.P.A. SOCIETA’ BENEFIT on the CRA website  and the rating assigned to the entity is B1 (first issuance). The analysis revealed it is an adequate company with average capability of repaying financial obligations and it is little affected by adverse economic scenarios.

NWG ENERGIA S.P.A. SOCIETA’ BENEFIT operates in the national free electricity market and since its establishment in 2014 has been committed to guaranteeing its end customers energy supplies exclusively from renewable sources, thus paying particular attention to the environment and sustainability. In 2016, in order to acquire the status of a "Benefit Company," the Company expanded its corporate purpose to include not only profit-making activities but also common interest purposes and becoming, in the same year, Italy's first energy B-Corp.

NWG ENERGIA S.P.A. SOCIETA’ BENEFIT presents a significant expansion of trade payables due to higher costs incurred in energy supply phase, which affects the degree of capitalization. The financial indebtedness, largely concentrated in medium and long-term, appears broadly sustainable with reference to both marginality produced and equity capital. 

The management of credit lines appears to be correct, with punctual payments for loans and long-term debts, while the utilization of self-liquidating risks and overdraft facilities risks appear contained. The financial balance is adequate, with current ratio above one. 

There is evidence of a contraction in cash flow from operations, which is affected by the absorption of resources by working capital and the reduction in self-financing, while the substantial repayment of financial liabilities results in additional cash absorption. Margins, which were severely affected by the rise in energy prices in the last quarter of 2021, express a significant contraction compared to previous years; nevertheless, data for the first half of 2022 suggest a significant expansion in business volume and a concrete improvement in profitability. 

In terms of governance, the Company has a board of directors flanked by a board of statutory auditors, while the auditing of accounts has been entrusted to a specialized company. During 2021 the Company started working on the adoption of the Organizational Model pursuant to Legislative Decree 231/2001. NWG ENERGIA S.P.A. SOCIETA' BENEFIT, which holds 20 percent of its own shares and has no holdings in other companies. The Company has an easily identifiable group structure, with control traceable to the two founding shareholders of NWG ITALIA. 

The Company’s positioning, with respect to the reference peer group, appears solid in terms of size; solvency and profitability are, instead, below the 50th percentile. The peer group expresses overall sufficient solvency while the liquidity and profitability indicators appear adequate. 

The energy sector in Italy is going through a period of high uncertainty: in the short term, this is caused by strong geopolitical tensions and the need for the Italian government to activate alternative sources of supply. The feedback on the macroeconomic front has been a marked rise in inflation, which has eroded economic growth. 

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 not a buyer of ancillary services provided by modefinance (credit risk software).

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 - Stefano Chirsich, Rating Analyst
stefano.chirsich@modefinance.com

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