The latest Mintos Risk Score updates based on developments and data from the second quarter of 2021 are now live. While in this article we share the general summary of the most recent changes, all details about this quarterly update can be found on the Mintos Risk Score Updates page. An overview of historic changes of the Mintos Risk Score through the quarters is also available as a spreadsheet on the Updates page.
Overview of changes in the Mintos Risk Scores and subscores based on Q2 2021
Due to the high number of new lending companies we onboarded this summer, in this update, most changes come from these companies finding their place in the Mintos Risk Score tracking list. In addition, for a number of companies, the Mintos Risk Score for loans has been withdrawn.
In general, we didn’t notice any major patterns behind the most recent changes in the Mintos Risk Score and subscores. Some changes are driven by marginal changes in the financial standing of the company in the second quarter of 2021, and others are driven by country-specific factors, e.g. FX volatility.
Consequently, most changes are seen across the Buyback Strength subscore and the Loan Portfolio Performance subscore. The Loan Servicer Efficiency has changed in three cases, and the Cooperation Structure subscore remained unchanged for all evaluated loans.
Overall, the Mintos Risk Score has changed for 7 companies: 6 were downgraded, while one company had an upgrade.
New lending companies to track in the Mintos Risk Score updates
10 new lenders whose loans are evaluated with the Mintos Risk Score have been added to the list. Most of these are offering loans in Mexico: Alivio Credit, CAPEM, Conmigo Vales, GoCredit. In addition, the Mexican entity of ID Finance has recently relaunched activity on Mintos.
Jet Finance and LF TECH are new companies on Mintos offering investment opportunities from Kazakhstan, Fenchurch Legal is an addition to the Mintos investment offering from Great Britain, Watu Credit has joined Mintos with motorbike loans from Uganda, and Zaim Online is offering loan investments from Russia.
Companies with withdrawn scores
The Mintos Risk Score was withdrawn for 8 companies and/or entities. For some of them, this was due to a current inactive status on Mintos. Companies with inactive investments offering on the platform are: AgroCredit Latvia, Creamfinance Latvia, Kredit Pintar Indonesia, Mikro Kredit Belarus, Pinjam Yuk Indonesia, and Sun Finance Denmark.
The scores for loans from Dozarplati Russia and Eleving Albania have been withdrawn and won’t be evaluated in the upcoming updates, as these loans have been rebought from Mintos investors due to changes in the lending companies’ business directions.
Mintos Risk Score updates schedule
The regular schedule for the Mintos Risk Score updates is quarterly. Exceptions will be made in some cases when there is a significant material improvement or deterioration for specific loans on the marketplace, in which case the changes are introduced as necessary.
Note that if you want to adjust your investment preferences based on the most recent Mintos Risk Score updates, you need to update your investment strategies.
Mintos Risk Score methodology
The Mintos Risk Score is an aggregate of four subscores that are assigned to four different aspects of particular loans as investment opportunities. These subscores rate:
- loan portfolio performance (the portfolio health and historical performance of the loan book),
- loan servicer efficiency (the capabilities of the loan servicer when it comes to the collection of borrowers’ payments),
- buyback strength (the buyback obligor’s ability to fulfill contractual obligations, meet liquidity needs, and capital sufficiency), and
- cooperation structure (the legal setup between the loan issuing company and Mintos).
According to the significance we see in each subscore, the weights of the subscores are loan portfolio performance 40%, loan servicer efficiency 25%, buyback strength 25%, and legal structure 10%.
The Mintos Risk Score and subscores are expressed on a numerical scale from 10 to 1, where 10 represents a low risk and 1 represents a high risk. The score can also be shown as “Score Withdrawn”, with a value of 0, when one or more subscores are not available, or simply when there are no loans available for investment by a specific loan issuing company.
Here you can learn more about the Mintos Risk Score methodology.
Disclaimer: Under no circumstances should the Mintos Risk Score be treated and relied upon as a credit rating. It is not prepared in accordance with the methodology and provisions defined by the Regulation (EC) No 1060/2009 on credit rating agencies. The Mintos Risk Score is not investment advice and Mintos cannot be held liable for any losses which may result from basing investment decisions on information and/or analytical materials provided on this website.