Credit ratings are incredibly important for microfinance institutions (MFIs) that aim to support marginalized communities and small businesses. A credit rating serves as proof of an entity’s creditworthiness and repayment capability. These institutions require funding to promote financial inclusion, and a good credit rating can help them access international funding and investments, thus enhancing their impact.
Microfinance Institutions depend on their credit rating to secure various financing options such as loans and investments. A positive credit rating from an established Credit Rating Agency, like ICRA Rating, means lower borrowing costs, allowing MFIs to serve more people and expand their reach. A strong credit rating builds trust with lenders and attracts investors, making it easier for MFIs to secure long-term, low-cost capital. This financial stability enables them to offer more affordable services to their clients.
In addition to funding, credit ratings encourage growth and innovation within MFIs. By improving financial management and governance, MFIs can become more agile and innovative in their approach. Enhancing credibility, facilitating access to funding, and reducing borrowing costs, credit ratings empower MFIs to positively impact the communities they serve.
The recent webinar that ICRA Rating had was held on March 11, 2024, in collaboration with Tanzania Association of Microfinance Institutions (TAMFI) CEO, Ms. Winnie Terry, and Ms. Roanna Peat, CFO of Agora, was a resounding success. The overwhelming support received has left ICRA Rating extremely pleased and motivated to continue providing exceptional services to its clients.