SPTF annual meeting, the 2nd of June 2009 - Madrid1

SPTF

Rating Initiative Update as ofMay 22nd 2009

Maintsream social performanceMaintsream social performance

Creating the synergies and building on:

• CGAP former Rating Fund 2003-7• 22 SPI identified by SPTF and SPS of Mix Market• SPI audit tools• CGAP social rating pilots with 4 raters : M.Cril,

Microrate, Microfinanza Rating and Planet Rating

Rating Initiative managed by ADA started in Sept 2008 supported by Luxembourg Cooperation, SDC, MIL, Oxfam Novib, SPTF, BlueOrchard and ResponsAbility.

Objectives and targetsObjectives and targets

• Promote a viable microfinance rating market by co-funding:

Financial rating (and mini assessment) Social ratings (standard and SR with client

survey) later, an Integrated rating• Give transparent information for MFIs, funders

and stakeholders: With quality control (role of the Advisory Board

chaired by Laura Foose, SPTF) Awaireness building campaign • Give information on microfinance rating

market: Annual Rating Market Outlook Report

Co-funding of ratingsCo-funding of ratings

Total number of ratings approved as of May 22nd 2009

Since Sept 2008

2009 Total

1) Performance Rating

23 13 36

First 15 12 27

Second 8 1 9

2) Mini Assessment

6 3 9

3) Social Rating 8 43 51

Total (1+2+3) 37 59 96

Combined (financial and social) / Nbr. of MFIs

6 30 36

Distribution of productsDistribution of products

In 2008, financial ratings (peformance and mini ratings) approved or disbursed were considerably higher than social ratings.

In 2009, social ratings are almost 3 times more frequent than financial ratings and 71% of these social ratings are combined with financial ratings.

RegionsRegions

Geographical distributionGeographical distribution

• For financial ratings, the Initiative approved the majority of co-funded ratings in Africa (52%).

• For social ratings, the Initiative approved 61% of co-funded ratings in LAC and 23% in Africa.

Awareness raising activitiesAwareness raising activities

These activities included: World Microfinance Forum Geneva, October

2008 Awareness raising workshop and AMT

investment fair, Dakar, October 2008 Regional Workshop for MF associations

Ethiopia, May 2009.

Type of activity Amount Target audience

International conferences

3 Investors, development agencies and some MFIs

Workshops 2 MFIs from several regions

Promotional mailings

6 Around 2000 stakeholders (MFIs, investors and developmentt agencies)

Market informationMarket information

Elaboration of the Microfinance Rating Outlook Report 2008

Dissemination of the report (750 documents distributed and 2000 copies sent by email to stakeholders)

Start of collection process of MFI feedback

Management of the InitiativeManagement of the Initiative

Communication :

Initiative is temporary on ADA’s website (MFI transparency): www.microfinance.lu

Own website should be operational by

Sept 2009: www.ratinginitiative.org

Financial SituationFinancial Situation

• The need of funding for the whole duration of the Initiative is approximately €1,667,470, which represents 49% of the total budget.

Funding sources Amount

Total resources 1,797,500

Total budget 3,464,970

Need of funding 1,667,470

Considering :

The high demand for financial ratings and the even greater demand for social ratings,

The strong results of the Rating Initiative with the approval of 96 ratings in 9 months,

We invite any funder that believes that financial

and social transparency is a relevant issue,

To join the Rating Initiative.

Please talk to the following participants Please talk to the following participants in the SPTF annual meeting:in the SPTF annual meeting:

David Quien, Manager of the Rating Initiative

Benjamin Mackay, Programme Assistantadmin@ratinginitiative.org Phone: 00 352 45 68 68 24

Or any one of the following Steering Committee members:

• Daniel Feypel, Luxembourg Development Cooperation

• Hans Ramm, Swiss Development Cooperation• Pius Frick, The Microfinance Initiative

Liechtenstein• Bruno Molijn, Oxfam-Novib• Laura Foose, SPTF

THANK YOU !THANK YOU !