Financial Sustainability Rating (FSR) Announcement: MicroLoan Foundation Malawi

Inclusion [Social Ratings] today released a newly assigned Financial Sustainability Rating (FSR) on MicroLoan Foundation Malawi, an MFI based in the Republic of Malawi.

MicroLoan Foundation’s Social Mission is “to provide the poorest women in Sub-Saharan Africa with the tools to enable them to work their own way out of poverty.”

Inclusion [Social Ratings] a attribué à MicroLoan Foundation Malawi an FSR rating grade of FSR3-, following remote due diligence of the organization’s operations and interviews with staff. A FSR3 grade indicates that an organization’s infrastructure and processes are consistent with a good likelihood of operating in the best interests of its clients and beneficiaries, that this is among its high priorities and that it attempts to manage the risk of causing adverse effect to its beneficiaries and other stakeholders.

Une note FSR3 est cohérente avec une IMF qui :

  • respecte les bonnes pratiques dans la plupart des facteurs clés du FSR ;
  • démontre qu’elle dispose de systèmes d’information, de contrôles internes et de procédures adéquats en ce qui concerne les informations fournies pour le FSR ;
  • présente une tendance à la baisse des résultats financiers et qu’il existe certains risques pour les bénéfices futurs potentiels ;
  • maintient des normes raisonnables en termes de pratiques de protection des clients et des ressources financières.

The “-” appended to the FSR3 reflects the most negative range of that rating category. Inclusion [Social Ratings]’s FSR on MicroLoan Foundation Malawi is based on Inclusion [Social Ratings]’s Financial Sustainability Rating Methodology. An FSR measures financial sustainability on a fifteen-point scale, in which FSR1+ is the highest grade and FSR5-, the lowest.

About Inclusion [Social Ratings]’s Financial Sustainability Ratings 

The Inclusion [Social Ratings] FSR assesses the financial performance of an organization not only by looking at its past results, but also by reviewing the quality of its operational and financial structure and the processes it employs to assess the likelihood of such performance being sustained in the future.

It also incorporates management interviews conducted in situ in the field and/or telephonically, and interviews with branch staff to assess the levels of financial performance that result from the activities of the organization.

Un rapport de notation complet peut également être téléchargé sur notre site web à l'adresse ici.

If you need further information on these ratings or about Inclusion [Social Ratings]’s other ratings, please contact Santiago Arnaudin at sarnaudin@inclusionsocialratings.org.