Category: Investments and funds. Country: Peru.
MicroRate is the first rating agency specializing in the evaluation of microfinance institutions (MFIs). Its objective is to link MFIs with funding sources and in particular with international capital markets. MicroRate evaluations allow lenders and investors to measure risk and they thereby help to create the transparency without which financial markets cannot work. MicroRate s comparison tables are an invaluable tool for measuring the performance of MFIs. MicroRate data are verified in the field and they can be adjusted to neutralize the effect of differing accounting practices and subsidy levels. Since 1997, MicroRate has analyzed over 200 MFIs in Latin America and Africa. This provides a unique basis of practical experience and of performance data - captured in an industry database- which MicroRate uses to determine trends and performance benchmarks. Evaluation teams visit MFIs tracked by MicroRate for annual updates. Interim financial and portfolio data are incorporated semi-annually. Evaluation teams check portfolio quality, information systems, internal controls, market environment and the financial health of the MFI. They interview all levels of management and staff, sample portfolio quality and analyze financial and operational data. MicroRate does not apply a rigid rating formula. Rather, building on their extensive experience, evaluation teams concentrate on identifying critical risks. Evaluations are summarized in succinct reports, which highlight strengths and weaknesses and discuss critical areas. MicroRate reports are made available to interested parties with the permission of the MFI concerned. To date, MicroRate evaluations have been commissioned by funders, donor agencies and increasingly by MFIs themselves. MicroRate also supervises MFIs on behalf of lenders or donors. However, to avoid conflicts of interest, MicroRate does not provide consulting services nor is it affiliated with any lender, donor or investor. In Africa, MicroRate operates through an affiliated company, Global MicroRate Africa (GMRA) based in Johannesburg. GMRA is a joint venture with Global Credit Rating, Africa s largest commercial rating agency. During the past eight years MicroRate has worked with the Inter-American Development Bank, the Multilateral Investment Fund, USAID, UNDP, the Caribbean Development Bank, Women s World Banking, and the International Network of Alternative Financial Institutions, among other clients. Risk-based financial and institutional analysis of 23 leading Latin American microfinance institutions (MFIs). These institutions included commercial banks, non-bank intermediaries and specialized credit-granting NGOs (non-governmental organizations). One outcome of the initiative was a set of performance benchmarks for microfinance institutions in the region...
Address: Parque 27 de Noviembre 430 Of. 3B, San Isidro, Lima,27, Phone: 51 1 442 5050 Fax: 51 1 442 5511
