Ratings

What kind of ratings do we offer?

We offer two different types of ratings: institutional ratings, based on our GIRAFE methodology, and Social Performance ratings, based on our Social Performance methodology. They both target MFIs that wish to obtain new funding, to have a comprehensive assessment of their risk profile or social performance and to enhance their international visibility. For investors, those two kinds of rating represent a reliable source of well-structured, transparent information useful to guide their investments.

GIRAFE institutional ratings
Our GIRAFE institutional ratings provide an opinion on the long term financial sustainability of MFIs by assessing the management of key risks and performance relative to industry benchmarks and competitors. They mostly target mature MFIs. Our GIRAFE methodology enjoys a strong international reputation, thanks to its quality, consistency, comprehensive approach and capacity to anticipate industry trends. For mature MFIs, it is a valuable tool which provides both a complete and concise overview of their long-term financial performance made by an independent expert.

Social Performance ratings
For most MFIs, institutional sustainability is only a means to an end: achieving their social goals. Our Social Performance ratings are a useful complement to our GIRAFE institutional ratings by providing a concise analysis of the ability of an MFI to reach its social goals. They can be applied to MFIs of any legal status, size, scope, or social mission. By getting a social performance rating, MFIs demonstrate efforts towards client satisfaction and social concerns of international investors, thereby facilitating their access to funding. Through the rating process, weaknesses and strengths are also identified in order to reduce the MFIs’ social risks and strengthen the MFIs’ social performance.

Social Performance ratings with survey
During our Social Performance ratings, we can also provide a survey which aims at collecting reliable and objective information on the social status of clients, their level of satisfaction with the services and the level of implementation of Client Protection Principles. This survey is conducted by a specialized and independent survey company.

How is a rating undertaken?

During 4 to 7 business days depending on the needs, an evaluation of the MFI’s performance is conducted by a senior analyst (supported by other analysts as necessary) in an interactive mode to ensure a solid ownership of the conclusions of the analysis. The evaluation is based on:

Interviews with the management team, board of directors, and field staff
Verification and validation of the financial and social performance information and indicators
Document review (communication documents as well as internal ones)

What are the advantages to conduct both ratings jointly?

MFIs can boost their benefits through a combined GIRAFE and Social rating by gaining a global perspective on their financial and social performance and how they interlink. Conducting both ratings at the same time enables MFIs to save time and money. MFIs can easily use the results of the ratings to motivate their team to achieve both their financial and social goals.

What are the main features of a rating report?

Our GIRAFE institutional and Social Performance reports take the form of a concise, comprehensive and objective 15 page report supporting the rating grade. Our GIRAFE reports analyse the MFI’s institutional performances through standard performance ratios and financial statements while our Social Performance reports offer a thorough social performance analysis of the evaluated MFI, based on social performance indicators compliant with the framework defined by the international Social Performance Task Force. Among other key facts, all our rating reports include a comparison of the MFI’s performance with local, national and international benchmarks and a clear assessment of the microfinance sector, of the business climate as well as the economic and political situation of the MFI’s country.

For more information on the methodologies, see “Our methodology”.

How can I finance my rating?

As Planet Rating is accredited by the two following funds, the rating of an institution is therefore eligible for co-financing.

	Rating Initiative: the Rating Initiative offers a partial co-financing for financial and social ratings and evaluations services. The first rating may be co-financed up to 70% or a maximum of 8,000/11,000 Euros and a second rating can be co-financed up to 50% or a maximum of 6,000/9,000 Euros depending on the region and the type of rating. Social ratings can be co-financed for all MFIs globally and financial ratings for all MFIs outside of Latin America & the Caribbean.

	Rating Fund II: MFIs from Latin America & the Caribbean willing to apply to a financial rating are covered by the Inter-American Development Bank’s Rating Fund II Project. It co-finances a first rating up to 80% or a maximum of 8,000 USD, a second rating up to 60% or a maximum of 6,000 USD, and a third rating up to 40% or a maximum of 4,000 USD.