On Bondster, the provider CrediFace offers investments in consumer loans. After evaluating the information available, we have decided to upgrade its rating from B to B+.
The credit risk rating compiled by the analyst team at Bondster reflects a provider’s ability to meet its obligations to investors as well as liquidity and capital requirements. We evaluate the financial condition of individual providers on an ongoing basis, and if necessary, adjust their rating.
After a careful assessment, we have increased the rating of CrediFace from Peru from grade B to grade B+.
The company was profitable in Q1 2023 and maintains a low default rate on its loans. (only 11% of its clients were over 30 days behind on their payments). CrediFace is steadily building its loan portfolio, and despite being very strict and having an approval rate of only about 8%, the portfolio is now worth over one million euros. Capital adequacy exceeds 17% and liquidity indicators are at a good level.
The economic situation in Peru was stable in June 2023 and showed signs of growth. However, certain risks and uncertainties were present, such as high inflation, tight monetary policy, social tensions and populism, financial instability and global recession. In the first quarter of 2023, there was a negative shock caused by the climatic phenomenon El Niño Costero, which affected economic activity in the country. The situation is expected to improve throughout 2023 but it won’t be until early 2024 that the effects of El Niño Costero will completely fade away. Corruption and political instability are also among the challenges the country is facing. Still, Peru remains an important player in the region with the potential for further growth and development. Despite the slightly deteriorated macroeconomic conditions in Peru, the loan provider CrediFace is doing financially well.
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Author of the article: Roman Muller
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