MICROCAPITAL BRIEF: MicroFinanza Rating Issues Financial, Social, Microfinance Investment Vehicle (MIV) Ratings; Client Protection Certifications in Burkina Faso, France, Asia, Latin America

Italy-based MicroFinanza Rating (MFR) recently informed MicroCapital that during June it issued three Social Ratings, 11 Financial Ratings and two Client Protection Certifications to 13 microfinance institutions (MFIs). It also issued a Microfinance Investment Vehicle (MIV) Rating of Adequate to Microfinance Solidaire SAS, an MIV in France, regarding its level of “performance compared to relevant benchmarks, as well as on the MIV policy and systems adequacy to manage inclusive finance / impact funds and related risks.”

Of the Social Ratings, two are at the BB level for Instituto de Investigaciones Socioeconomicas y Tecnologicas (INSOTEC) of Ecuador and Oxus Kyrgyzstan, an affiliate of the French NGO Oxus Group. Programme de Rehabilitation et d’Appui au Secteur Agricole du Cambodge (PRASAC) of Cambodia earned a Social Rating of B+.

MFR issued Financial Ratings for the following MFIs in Burkina Faso: B, with a stable outlook, for Groupe d’Accompagnement a l’Investissement et a l’Epargne (GRAINE); CCC, with a stable outlook, for Union Regionale des Cooperatives (URC) Nazinon; CC+, with a negative outlook, for Association Inter Instituts Ensemble et Avec (ASIENA); and CC, with a negative outlook for Union des Baore Tradition d’Epargne et Credit (UBTEC).

In Asia, MFR assigned Financial Ratings to the following MFIs, each with a stable outlook: PRASAC of Cambodia, which earned an A; Amret of Cambodia, which earned an A-; and Oxus Kyrgyzstan, which received a BBB-.

In Latin America, MFR issued four Financial Ratings. Conserva of Mexico earned a BB+, with a stable outlook, and Fundacion Espoir of Ecuador earned a BB+, with a positive outlook. Both INSOTEC and Pro Mujer Nicaragua earned ratings of BBB+, with a stable outlook.

Lastly, MFR granted Client Protection Certifications to First MicroFinance Bank of Pakistan and Pro Mujer Argentina. These certifications are made in collaboration with the Smart Campaign, a program of the US-based nonprofit Center for Financial Inclusion.

Established in 1990, US-based ProMujer is a nonprofit organization that provides microlending, healthcare and educational services to low-income women in Argentina, Bolivia, Mexico, Nicaragua and Peru.

First Microfinance Bank of Pakistan, which is affiliated with the Switzerland-based nonprofit Aga Khan Development Network, is majority-held by Habib Bank Limited (HBL). HBL, which is based in Pakistan, controls commercial banks and asset management firms active in 24 countries.

In addition to Italy, MFR, which was formed in 2000, has offices in Bolivia, Ecuador, Kenya, the Kyrgyz Republic, Mexico, Peru and the Philippines.

By Nicholas Galimberti, Research Associate

Sources and Additional Resources

Information provided directly to MicroCapital by Microfinanza Rating

MFR background
http://www.microfinanzarating.com/index.phpoption=com_content&view=article&id=97&Itemid=167&lang=en

Smart Campaign
https://www.smartcampaign.org

Pro Mujer background
https://promujer.org/get-know-us/who-we-are/

ProMujer financials
https://promujer.org/content/uploads/2018/06/2017_ProMujer-International-Financial-Statements-2017-1.pdf

Aga Khan Development Network activity in Pakistan
http://www.akdn.org/where-we-work/south-asia/paquist%C3%A3o/microfinance-pakistan

HBL background
http://www.hbl.com/aboutus

HBL annual report
http://www.hbl.com/Download/HBL%20Annual%20Report%202017.pdf

MicroCapital Brief; May 24, 2018; MicroFinanza Rating Issues 6 Institutional, Social Ratings to Microfinance Institutions (MFIs) in Africa, Latin America
https://www.microcapital.org/microcapital-brief-microfinanza-rating-issues-6-institutional-social-ratings-to-microfinance-institutions-mfis-in-africa-latin-america/