MicroRate’s methodology for social and performance ratings allows our analysts to offer microfinance institutions (MFIs) reports that are comprehensive and valuable to their operation. Our competitive approach to the rating process helps us conduct fair and accurate ratings, and builds strong relationships with our clients.
Performance Ratings
MicroRate Performance Ratings provide a comprehensive evaluation of MFIs, incorporating features of a credit rating with a deeper level of analysis to evaluate the institution’s effectiveness. This in-depth focus on areas allows MicroRate to detect future risks that might be overlooked in a standard credit rating.
MicroRate’s analytical framework evaluates six areas of performance and risk including:
- Financial Profile
- Microfinance Operations
- Portfolio Quality
- Organization & Management
- Governance & Strategic Positioning
- Social Perspective
In order to accurately capture this information, MicroRate performs a thorough on-site evaluation of an MFI. The Rating Team and the Rating Committee identify the company-specific risks and award an overall Performance Rating grade using their extensive experience.
Social Ratings
A MicroRate Social Rating measures the level of social return on investment (SROI) in a microfinance institution (MFI).
As investors are increasingly becoming interested in the double-bottom line of their investments, desiring both financial and social returns, a Social Rating not only provides an independent analysis of an MFI’s social performance but goes deeper to evaluate an MFI’s social results and social commitment, and gives the ability to compare MFIs overall social returns.
MicroRate’s social rating is based on an evaluation of an MFI’s social performance, including its social results and social commitment within the its geographic context.
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Social Results |
Social Commitment |
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| Evaluates the results of an institution’s operations and degree of social mission fulfillment. | Evaluates the institution’s social focus, and orientation as well as its social performance management. | |
| Institutional Results:
1. Depth and Diversity of Services 2. Cost, Efficiency, and Sustainability 3. Institutional Social Responsibility |
Social Performance Management Systems:
1. Mission, Communication and Management 2. Strategic Planning 3. Monitoring 4. Client Protection 5. Customer Service 6. Recruitment and Training 7. Incentive System |
