ABOUT AERIS RATINGS Aeris
ABOUT AERIS RATINGS
Aeris provides a comprehensive, third-party assessment of community development financial institution (CDFI) loan funds, helping investors evaluate opportunities that meet their impact goals and risk parameters. Aeris Ratings draw on Aeris’ deep expertise and leverage our proprietary system for assessing CDFI impact and financial performance, risk, and mitigants. View the distribution of current ratings. Aeris has issued more than 500 CDFI ratings since 2004.
Aeris Impact Ratings assess the pursuit and achievement of social mission as evidenced by products and strategies, use of resources, and how impact is measured and informs the refinement of those products and strategies. The Aeris methodology can be applied to any type of mission-driven entity or fund.
Aeris Financial Ratings assess capitalization, asset quality, management, earnings, and liquidity—often referred to as a ‘CAMEL’ assessment. The Aeris methodology evaluates financial strength and risk in the context of the community finance sector, and does not use statistically-generated benchmarks due to the limited size of the sector, the wide variety of business models and operating environments.
AAA is the best possible financial strength and performance rating, and four stars is the best possible impact rating. A CDFI loan fund with an Aeris financial strength and performance rating of BBB- or better is considered investment-grade. CDFIs that receive the “Policy Plus” distinction also demonstrate leadership in public policy change. Click here for full definitions of the Aeris ratings scale.
NOTE: As of January 1, 2017, the Aeris rating scale changed to a star system for impact performance (i.e., “four stars” to “one star”) and a letter format for financial strength and performance (i.e., “AAA” to “B”). Click here for a conversion table from the pre-2017 rating scale to the new rating scale.