M-CRIL’s financial/credit ratings provide an opinion on the relative ability of an MFI or institution to meet financial commitments and an assessment of the areas of strength and weakness in its operation. Credit ratings are used by investors to gauge the creditworthiness of their borrowers and potential borrowers. M-CRIL ratings cover the global spectrum along with long standing experience in governance, strategy, management systems, financial performance and operational capacity. M-CRIL presents a comparison of some critical performance aspects from its large database maintained over its professional life.

The use of credit rating defines the function: “investment grade” ratings indicative of low to moderate credit risk and safe systems, while those in the non-investment grade categories either signal a higher level of credit risk or that a default has already occurred and poor systems. Credit ratings express risk in relative rank order, as ordinal measures of credit risk and are not predictive of a specific frequency of default or loss.

A credit rating is usually commissioned by investment agencies or commercial lenders, although with the increased flow of funds and a large amount of foreign funding in the microfinance sector, individual MFIs and institutions are increasingly commissioning their own ratings.

For M-CRIL grades, click here.
For M-CRIL Financial Rating methodology, click here.

Sample credit rating reports:

1. FinAgro Credit Rating Report

2. Sanghamithra Credit Rating Report