New Mintos Rating update

28.06.2019

mintosblog

First quarter 2019 has been positive for most loan originators on the Mintos marketplace. As a result, Mintos Rating update comes with good news. 

On July 4, the risk rating has been upgraded for 8 loan originators on Mintos: Agrocredit, Dinero, Cashwagon, Credilikeme, Credius (Romania), ID Finance (Spain), Metrokredit, and Varks.

We update risk ratings based on loan originators’ operations, management, financials, risk appetite, portfolio performance and regulatory environment. It’s our top priority to evaluate loan originators’ portfolios from as many angles as possible to make sure your investments in loans on Mintos are stable and secure. You can learn more about Mintos Rating here.

Agrocredit

Agrocredit has been operating as a non-bank lender that issues loans secured with grain sale contracts to Latvian farmers since 2011. Farmers use these loans to finance necessary agricultural inputs and other working capital needs.

What has changed?

Agrocredit’s rating has been upgraded from B+ to A-

Why?

By working with a profit and very low default levels (historical final loss rate is 0%) for an extended period of time, Agrocredit has proved to have low asset risk, strong management, and well diversified funding sources.

Cashwagon

Cashwagon is a rapidly growing international fintech service provider founded in 2017. With headquarters in Singapore, the company has operations in five countries – Sri Lanka, Indonesia, Vietnam, Cambodia, and the Philippines. Cashwagon believes that its digital products and services are better positioned to meet the needs of their customers –  80% of Southeast Asia’s population that is underserved by traditional financial services.

What has changed?

Cashwagon’s rating has been upgraded from C+ to B-

Why?

Cashwagon group has shown its ability to grow its business both in volumes and geographies for the past 2 years. By the end of April 2019, Cashwagon’s net loan portfolio had already grown to 23.7 million USD. In addition, the regulatory environment in Indonesia has proven to be stable and non-bank entities are well-regulated. 

Credilikeme

Credilikeme is one of the most innovative loan originators in Mexico. Founded in 2012, Credilikeme offers personal loans to Mexican citizens on its website and immersive mobile app which uses gamification features. 

What has changed?

Credilikeme’s rating has been upgraded from C to C+

Why?

Credilikeme’s portfolio has improved in quality and provided stable returns. In addition, the company has managed to keep a high capitalization level which is indicated by Equity/Assets ratio being close to 70%.

Credius (Romania)

Credius is one of the 5 largest alternative lenders in Romania and it is backed by a private equity group New Century Holdings (“NCH”) from the United States. NCH manages approximately USD 3 billion of capital through a network of nine offices in Eastern Europe, Russia and Brazil. The company’s activities in Romania are regulated by the National Bank of Romania.

What has changed?

Credius’s (Romania) rating has been upgraded from B to B+

Why?

The main reason for the rating upgrade was the the mitigation of regulatory services in finance sector in Romania. As an addition, Credius has diversified its product offering by adding car loans and business loans.

Dinero

Dinero was established in 2017 and is the fastest growing online lender in Ukraine. It specialises in short-term loans. The company offers the opportunity to invest in its short-term loans listed in EUR on Mintos with expected net annual returns of up to 9.5%.

What has changed?

Dinero’s rating has been upgraded from C+ to B-

Why?

Dinero has maintained a stable loan portfolio performance while also having a high portfolio growth. By the end of 2018, in less than 2 years of operating history, Dinero’s portfolio had grown to 4.1 million EUR. As a result, Dinero has become one of the top players in the market. 

ID Finance (Spain)

ID Finance is a pioneering fintech company in emerging markets. Founded in 2012 and headquartered in Barcelona, ID Finance is now the largest online consumer lender in the CIS region and a leading lender in Europe, trusted by both private and institutional investors around the world.

What has changed?

ID Finance’s (Spain) rating has been upgraded from B- to B

Why?

ID Finance in Spain has shown significant improvements in profitability at the end of 2018 and 1Q 2019. As a result, the company has strengthened its market position in Spain.

Metrokredit

Metrokredit was established in 2017 in St Petersburg, Russia and is regulated by the Central Bank of Russia. The company offers short-term loans up to RUB 30 000 to Russian citizens with fast and convenient service.

What has changed?

Metrokredit’s rating has been upgraded from C+ to B-

Why?

Metrokredit’s portfolio started demonstrating a high, but stable growth in 2018 and has continued to improve since then. Additionally, Metrokredit’s loan performance has also shown better results in the past few months. 

Varks

Varks is a licensed financial institution that is governed by the Central Bank of Armenia. Since 2016, Varks offers its customers fast and easy access to funds through an effective application process. 

What has changed?

Varks’s rating has been upgraded from B to B+

Why?

Varks had a net profit of 6.6 million EUR in 2018 and has since had stable portfolio quality, as well as a growing asset base and diversified funding.

Important note

Please keep in mind that existing Auto Invest strategies do not automatically adjust after the risk rating upgrades. If you want to start or stop investing in these loans, you need to adjust your Auto Invest settings manually.