ShowHide Impact Management Rating description

Aeris ratings are not based on a normative curve. Given the unique mission and operating environment in which a loan fund works, it is not rated in comparison to other loan funds. Instead each institution is rated based on how it compares with the following ratings descriptions.

RatingDescription
★★★★A loan fund in this group has exceptional alignment of its impact mission, strategies, activities, and data that guide its lending, programs and planning. It fully and effectively uses its resources, both directly and indirectly, in pursuit of its impact mission. Its processes and systems accurately track comprehensive data on an ongoing basis, including both output and longer term outcome metrics, and it can provide data showing positive changes in achieving its impact goals. Board and management consistently use the data to adjust strategies and activities to improve its effectiveness.
★★★A loan fund in this group shows strong alignment of its impact mission, strategies, activities, and data that guide its lending, programs and planning. It accurately tracks relevant data that indicate that it effectively uses its resources to further its impact goals. However, it has may have limited activities beyond direct investments that support its mission and longer term outcome metrics may be limited. Board and management use the data on a regular basis to adjust strategies and activities in line with the Fund’s mission.
★★A loan fund in this group has reasonable strategies and activities given its impact mission. It tracks basic output data that indicate its resources affect change consistent with that mission. Board and management use the data on a limited basis to adjust strategies and activities.
A loan fund in this group may lack alignment of its impact mission, strategies, activities, and data. Either it lacks data to form an opinion of its impact, or the data is unsatisfactory. It also may have a history of underutilizing its resources to further its impact goals. Board and management provide little oversight of impact strategies and activities.

Policy Plus

Policy change is an integral part of this loan fund’s strategies. The loan fund leads initiatives to change government policy to benefit the community development finance industry or disadvantaged people and communities. The loan fund can provide evidence of its leadership role in recent policy changes that produced benefits beyond additional resources for the loan Fund itself, and management can clearly articulate the loan fund’s leadership role in current policy activities.

ShowHide Financial Strength Rating description

Aeris ratings are not based on a normative curve. Given the unique mission and operating environment in which a loan fund works, it is not rated in comparison to other loan funds. Instead each institution is rated based on how it compares with the following ratings descriptions.

RatingDescription
SOUND AAA A loan fund in this group has exceptional financial strength, performance and risk management practices. Any weaknesses are minor and can be handled in a routine manner by the board of directors and management. This loan fund is resilient to significant changes in its operating environment.
AA+
AA
AA-
A loan fund in this group has very strong financial strength, performance and risk management practices relative to its size, complexity, and risk profile. Challenges are well within the board of directors' and management's capabilities and willingness to strengthen. The loan fund is capable of withstanding fluctuations in its operating environment.
A+
A
A-
A loan fund in this group has strong financial strength, recent performance and risk management practices relative to its size, complexity, and risk profile. It is stable but more vulnerable to fluctuations in its operating environment than higher rated loan funds.
BBB+
BBB
BBB-
A loan fund in this group has satisfactory financial strength, performance and risk management practices relative to its size, complexity, and risk profile. It is stable but sensitive to fluctuations in its operating environment.
VULNERABLE BB+
BB
BB-
A loan fund in this group exhibits inadequate financial strength, performance, or risk management practices relative to its size, complexity, and risk profile. It exhibits weaknesses in one or more areas that could compromise its financial situation in the medium term, even in a stable operating environment.
B A loan fund in this group exhibits weaknesses in several areas that compromise its financial viability. Although the loan fund may be able to sustain operations for a period of time, its financial stability is extremely sensitive to any fluctuation in its operating environment.