Mintos Risk Score updates June 2022

The latest Mintos Risk Score updates based on developments and data from the first quarter of 2022 are now live on the Mintos platform. In this article, we share the general summary of the most recent quarterly changes and all other details can be found on the Mintos Risk Score Updates page. An overview of historical changes in the Mintos Risk Score through the quarters is also available as a spreadsheet on the updates page.

See all detailed updates

Overview of changes in the Mintos Risk Scores and subscores based on Q1 2022

The latest risk evaluation is based on the first quarter of 2022, but also on some information sourced from the current payments status of the lending companies on Mintos. The results are reflected in the changes of the Mintos Risk Score and subscores for the loans available for investments within the sets of Notes.

When it comes to impacts based on the current status, we mainly refer to the pending payments for investments in loans from a few lending companies. As expected, accumulated pending payments had a negative impact on the Buyback Strength subscore for loans from particular  lending companies.

Most changes that are based on information from the quarterly updates are related to the financial standings and portfolio performance. As usual, they’re reflected in the Loan Portfolio Performance subscore.

The third trend that drives changes in this update is the status of the legal setup of investments in Notes. At the moment, as we’re transitioning the platform to operate under a new investment setup (Notes), the security package is still being updated for some lending companies, which affects the Cooperation Subscore. As soon as the security package is finalized, the score will be revaluated and published on the platform. 

The Mintos Risk Score was changed for 10 companies, with one upgrade and nine downgrades. 

The Mintos Risk Score and subscores were withdrawn for one companyPodemos Progresar from Mexico. At the moment of this update, there is no active loan offering from this lending company. 

We also added loans from two new lending companies to the Mintos Risk Score updates, as Credifiel and Financiera Contigo from Mexico joined the platform in the past quarter. 

When it comes to loans from the lending companies from Russia and Ukraine, their status remains unchanged since the last update, with Mintos Risk Score and subscores withdrawn for these companies. 

Also, we want to remind you that there are no specific changes in how we write or treat loans in the Mintos Risk Score updates as we transition to investments in Notes. Loans are still an integral part of Notes, loan-backed securities available for investments exclusively on Mintos. From 1 July, we will be fully transitioned to investments in Notes only.

To see detailed comments about all the latest changes in the Mintos Risk Scores and subscores, visit the Mintos Risk Score updates page.

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 Notes on the platform, 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 underlying a Set of Notes. 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.

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