Capital Impact Partners Earns ‘AA’ Issuer Credit Rating from S&P Global
Independent rating recognizes organization’s strong asset quality, performance, and oversight
Arlington, VA (January 17, 2017)— S&P Global, the world’s leading provider of independent credit ratings, has assigned Capital Impact Partners with a “AA issuer credit rating with stable outlook”. The ratings analysis recognized Capital Impact’s strong asset quality and liquidity, minimal risk profile, and consistent growth in loans and assets.
“This AA rating from S&P Global further underscores that we can create positive social change in communities and continue to strengthen our balance sheet. As a social enterprise, we don’t believe the two have to be mutually exclusive and we are committed to broadening and deepening our investor base as we work to increase our impact going forward,” said Ellis Carr, president and CEO of Capital Impact Partners.
S&P ratings are a key tool used by corporate and philanthropic investors when making decisions about their investments by demonstrating creditworthiness with transparency and authority. Typically issued to corporate or government entities, Capital Impact is one of only five Community Development Financial Institutions who have received a rating from S&P Global.
It was noted in S&P’s analysis report that “we believe Capital Impact’s level of financial support is sufficient to warrant a ‘AA’ rating, based on our view of the corporation’s overall asset quality, minimal risk profile, liquidity, and management…S&P Global Ratings believes that CIP has a history of strong asset quality, performance, and oversight.” The full analysis report can be downloaded here.
To complete its evaluation, S&P Global compiled published reports, internal data, and information collected through interviews and discussions with Capital Impact’s management team. S&P Global analyzed its collection of detailed data with respect to Capital Impact’s financial condition, operation performance, policies, and risk management strategies.
The ratings analysis by S&P called out a number of important areas that guided its strong rating of the organization including:
- Generally strong history of loan performance and underwriting guidelines;
- Minimal loss exposure and low-risk debt profile, which can be absorbed through CIP’s reserves and unrestricted equity;
- Extremely strong history of loan performance;
- Consistent growth in loans and assets;
- Experienced and prudent management; and
- Diversified assets via its social lending platform
“This rating improves our ability to access financial tools that allow us to respond quickly to gaps we see in community investment,” said Natalie Gunn, Chief Financial Officer, Capital Impact Partners. “In particular, we are especially excited to explore the opportunity to engage with impact investors as a means to further amplify our social impact.”
In addition to the S&P AA rating, Capital Impact has received a number of independent validations that illustrate its efforts to drive impact for low- and moderate-income communities including:
- Four Star/AAA/Policy Plus rating by Aeris for social impact, financial strength, and leadership in policy changes impacting disadvantaged people and communities;
- Platinum level recognition by Guidestar;
- A member of the Federal Home Loan Bank Atlanta;
- Certified CDFI by the U.S. Department of Treasury’s CDFI Fund
Capital Impact’s financial results indicate a sustained effort of growing and strengthening its financial position. The organization’s 2015 loan portfolio increased by $22 million or 11 percent. This growth was matched with continued strong credit performance, as its borrower delinquency rate was just 0.4 percent. Top-line revenue continued to grow as well as unrestricted net assets rose by $17 million—an increase of 20 percent.
About Capital Impact Partners: Through capital and commitment Capital Impact Partners helps people build communities of opportunity that break barriers to success. We deliver strategic financing, incubate new social programs, and provide capacity-building to help ensure that low-to-moderate income individuals have access to quality healthcare and education, healthy foods, affordable housing, and the ability to age with dignity.
A non-profit community development financial institution, Capital Impact Partners has disbursed more than $2 billion to revitalize communities over the past 30 years. Our leadership in delivering financial and social impact has resulted in Capital Impact earning a S&P ‘AA’ and Aeris Four Star-AAA-Policy Plus ratings.
Headquartered in Arlington, Va., Capital Impact Partners operates nationally, with local offices in Detroit, Mich., and Oakland, Calif. Learn more at www.capitalimpact.org