Here is a recap of the April 11th SVMN meeting, featuring Damian von Stauffenberg of MicroRate:

A is for Alpha

Performance ratings implemented by MicroRate focus on how good of a job an MFI is doing at lending to the poor. Credit ratings by traditional rating agencies focus on the likelihood of default. A MicroRate rating include 5 subratings: operations, portfolio quality, management and organization, governance and strategic position and financial position. Of these, financial performance subratings receiving the strongest weighting.

MFIs are shaped by growth. In Latin America growth rates of 40% are typical and rates of 130% are not unheard of. Such fast growth requires capital. The need for capital among the 40 top Latin American MFIs alone is $5.3 billion, 80% of which will come from local sources (mainly commercial loans).

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