On September 24, 2010, Crisil, a credit rating agency based in Bangalore, India, assigned a “P1+” rating to the INR 7.5 billion (approximately USD 166 million) short – term debt program of SKS Microfinance, a publicly owned microfinance institution (MFI) based in India.
The rating represents Crisil’s view that “the degree of safety regarding timely payment on the instrument is very strong”. Crisil cites the strong market position of SKS Microfinance, widespread geographical presence and its ability to raise funds in the market as primary reasons for the rating.
In August 2010, the pass-through certificate program of SKS Microfinance also received a “P1+” rating from Crisil. As of March 2010, according to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, SKS Microfinance reported a return on assets of 4.96 percent, return on equity of 21.56 percent, gross loan portfolio of USD 961 million and 5.8 million active borrowers.
About Crisil (Credit Rating and Information Services of India Ltd):
CRISIL is a credit rating agency based in Bangalore, India, that operates internationally. It is a subsidiary of Standard and Poor’s and provides ratings for various microfinance institutions (MFIs), including approximately 30 that report to the MIX Market, the microfinance information clearinghouse. Some of these MFIs include Bandhan, BASIX, Cashpor Microcredit, Equitas, and Spandana. In October of 2009, CRISIL published a list entitled “Top 50 Microfinance Institutions in India.”
About SKS Microfinance:
SKS Microfinance is an Indian microlender that delivers microfinance products through a group-lending model to impoverished women in India. It is a for-profit, non-banking finance company which converted to a public limited company in May 2009 and launched an initial public offering on July 28, 2010, after which trading commenced on the Bombay Stock Exchange and the National Stock Exchange of India on August 16, 2010. Equity investors include Quantum Hedge Fund, Sequoia Capital, Vinod Khosla, Small Industries Development Bank of India, Bajaj Allianz, Yatish Trading, Kismet Capital, Sandstone Capital, Silicon Valley Bank and Unitus. SKS Microfinance reported total assets as of March 31, 2010, of USD 791 million. As of March 2010, according to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, SKS Microfinance reported a return on assets of 4.96 percent, return on equity of 21.56 percent, gross loan portfolio of USD 961 million and 5.8 million active borrowers.
By Trevor Kwong, Research Assistant
Sources and Additional Resources:
[1] Source: Crisil – Rating Rationale: CRISIL ‘P1+’ for SKS MICROFINANCE’s STD Programme:
http://www.crisil.com/Ratings/RatingList/RatingDocs/sks-microfinance_24sep10.htm
[2] MicroCapital Universe: Crisil:
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CRISIL
[3] MicroCapital Universe: SKS Microfinance:
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SKS+Microfinance
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/tiki-index.php
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