MicroRate’s social ratings measure the social performance of microfinance institutions (MFIs). A social rating not only provides an independent analysis of the MFI’s social management, but also provides an in-depth evaluation of social results and social commitment, framed in its respective context.
In order to accurately capture this information, MicroRate begins a preliminary desk-based analysis of the data and information provided by the customer. There follows a thorough on-site evaluation at the institution, which includes interviews with staff and managers at different levels, as well as visits to a few branch offices of the MFI. During the field evaluation, any additional information that is necessary and relevant for the analysis is assembled.
The final rating is a result of the analysis and in-depth discussion by MicroRate’s International Rating Committee, which is made up of senior managers and experienced analysts. It should be noted that MicroRate does not apply a rigid rating formula, since the impact of each risk on general performance will be different depending on the institution. The rating grade is valid for up to a year after the committee’s findings.