CREDIT.IT SOCIETÀ FINANZIARIA S.P.A. Corporate Credit Rating (First Issuance)

modefinance published the Corporate Credit Rating (Solicited) of CREDIT.IT SOCIETÀ FINANZIARIA S.P.A. on its CRA website. The rating assigned to the entity is B1- (First Issuance).

The analysis revealed the company is "an average company with average capability of repaying financial obligations and possibile adverse macroeconomic conditions or different management or strategies may impact on the capability of repaying debts".

The rating assigned by modefinance is based on the following key motivations:

• In 2018 the company showed a balanced economic and financial situation. The extremely low value of the leverage ratio (0.24) proves the company is well capitalized, while it could improve under the profitability point of view, despite a slight increase of the ratios' values. The values of the liquidity ratios are adequate.
• In 2018 Cred.it S.p.A. recorded low levels of liquidity assets and the net cash flow was negative. The operating cash flow was -83 thousand euros, which is the main reason of the total negative variation of -89 thousand euros. Anyway, thanks to the initial cash and cash equivalents, the situation doesn't raise any concern.
• Since the company has no financial indebtedness, the Central Credit Register doesn't report any warning (from November 2016 to October 2019).
• The company has 25 shareholders, but it's owned by 42.27% each by the Italian company Atlante S.p.A., held by Annamaria Pia Caputo, and by the Maltese company Sunflower Holdings Limited, held by Laura Antonella di Cio. Most of the members of both the governance and the board of directors are sector's experts and play both administrative and sales roles.
• The company was established in 2010 and the expertise of the management made Cred.it Spa a leading institution in Southern Italy. The company aims at strengthen and enhance its position throughout the country by increasing its capital structure. No black records were found for the company, neither with regard to the shareholders nor with regard to the directors.
• Compared to the peer group, the company could improve under profitability point of view, while it occupies the top position for solvency (94° percentile). The peer group achieved good results in 2018, especially in terms of profitability. The value of the median ROE reached almost 15%, whole the median ROCE reached 20%.
• The Financial Stability Report published in 2019 highlighted a slowdown in the traditional lending sector, which might result in a significant growth opportunity for Cred.it Spa. The company operates in an alternative lending sector and is another credit resource for privates and companies with difficulties in obtaining loans from the traditional financial industry (commercial, cooperative and saving banks. From the macroeconomic point of view, the situation in Italy remains uncertain and much will depend on the economic policies the Government will pursue.

The present Corporate Credit rating is issued by modefinance under EU Regulation N. 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 here.

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 here. For information on historical default rates of modefinance Corporate Credit Ratings please refer to ESMA Central Repository and ESMA European Rating Platform.

The quality of the information available on the rated entity and used to determine the present rating was judged satisfactory by modefinance. 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.

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.

Eva Vocci (Senior Analyst)– Head Analyst
eva.vocci@modefinance.com
+39 040 3756740

Pinar Dilek – Responsible for Rating Approval
pinar.dilek@modefinance.com
+39 040 3756740