Company Name

INNOVATIVE RFK SPA

ISIN

IT0005391161

Market

Euronext Access

Symbol

MLIRF

modefinance Corporate Credit Rating (Solicited) for 

INNOVATIVE-RFK S.P.A.: B1 (downgrade)

April, 19, 2021

 The analysis revealed that the company has average capability of repaying financial obligations, although possible adverse macroeconomic conditions or different management or strategies might impact on the capability of repaying debt. 

Innovative-RFK is an investment company founded in 2017 by the same partners as Red-Fish Kapital, a company that has long been active in the field of private equity investments. The investment target of i-RFK is innovative Start-ups and SMEs with a solid profitability profile in terms of marginality, turnover growth and cash generation. i-RFK stands as an investment partner through the purchase of minority shares, while increasing SME and start-ups values and leading them towards a listing on AIM Italy stock exchange or other Growth Market SME.

Modefinance rating is based on the following key elements:

 The company has an adequate economic and financial situation, although, it shows a decline in profitability also dictated by strategic and financial choices. The situation is not surprising, as the company is focusing its efforts on investments activities in anticipation of future returns. 

The analysis of the Italian Central Credit Register does not report any critical issues. 

The company is listed on Euronext stock exchange market and about a quarter of the shares are floating. The stock has experienced little price fluctuations, mainly due to its lack of liquidity. Nevertheless, the company has not been affected by the crisis caused by the outbreak of Covid-19. 

The corporate structure is stable and all the subjects, both physical and legal, appear well-defined in their roles and responsibilities. 

The company was founded in 2017 and went public on Euronext in 2019.

In 2020 it further strengthened its growth by increasing investments, supported by an increase in capital and an inflow of alternative financing to bank debt. 

Compared to the reference peer group, the company appears well positioned in terms of solvency and size. Profitability can be improved.  The innovative SMEs market, in which the analyzed company invests, constantly grows in terms of numbers, turnover, and employed workforce. The pandemic does not seem to slow down this growth and the various governments continue to invest in the sector. 

Under the macroeconomic point of view, the general conditions are negative, and the emergency related to the pandemic continues to burden the national and world economy. The continuous closures and general uncertainty can only make everything very difficult.   

prinnovative-rfk-spaeng.pdf
innovative-rfk-sparatingsolicitedapr14notifprocess.pdf