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.
| Rating | Description |
|---|---|
| ★★★★ | The CDFI has exceptional alignment of its mission, strategies, programs and services. It fully and effectively uses its financial resources in alignment with its mission, both directly with its portfolio investments and indirectly leveraging off-balance sheet financial resources. Its processes and systems accurately track comprehensive output and outcome data, on an ongoing basis. Impact metrics show positive changes toward achieving its impact goals. Board and management consistently use the data to adjust strategies and activities to improve its effectiveness in achieving its mission. |
| ★★★ | The CDFI has strong alignment of its mission, strategies, programs and services, and portfolio investments with its mission. It effectively uses its financial resources in alignment with its mission, primarily with portfolio investments; investment activities beyond its loan portfolio may be minimal. Its processes and systems accurately track output data, on an ongoing basis. Longer term outcome metrics may be limited. Impact metrics show positive changes toward achieving its impact goals. Board and management use the data on a regular basis to improve strategies and activities in pursuit of mission. |
| ★★ | The CDFI has reasonable strategies, programs and services, and portfolio investments that are in alignment with its mission. It has basic systems in place to track essential output data that indicate its resources are used consistent with its mission. Board and management use the data on a limited basis to adjust strategies and activities in pursuit of mission. |
| ★ | The CDFI may lack alignment of its mission, strategies, programs and services, and portfolio investments. Either it lacks impact data, the data is unsatisfactory, or data systems are weak. It also may have a history of underutilizing its financial resources consistent with its mission. Board and management rarely use data to adjust strategies and activities in pursuit of mission. |
Policy Plus
Policy change is an integral part of this CDFI's strategies. The CDFI leads initiatives to change government policy to benefit the CDFI industry or disadvantaged people and communities. The CDFI can provide evidence of its leadership role in recent policy changes that produced benefits beyond additional resources for the CDFI itself, and management can clearly articulate the CDFI’s leadership role in current policy activities.
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.
| Rating | Description | |
|---|---|---|
| SOUND | AAA | The CDFI 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. The CDFI is resilient to significant changes in its operating environment. |
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AA+ AA AA- | The CDFI 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 CDFI is capable of withstanding fluctuations in its operating environment. | |
|
A+ A A- | The CDFI 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 CDFIs. | |
|
BBB+ BBB BBB- | The CDFI 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- | The CDFI 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 | The CDFI exhibits weaknesses in several areas that compromise its financial viability. Although the CDFI may be able to sustain operations for a period of time, its financial stability is extremely sensitive to any fluctuation in its operating environment. |