CRAB signs rating service deal with US-based co
Sunday, 16 September 2007
FE Report
Credit Rating Agency of Bangladesh Ltd (CRAB) and the US-based MicroFinance ClearingHouse (MF-CH) have recently signed a memorandum of understanding (MoU) in Washington under which CRAB will assign ratings to the proposed micro-finance securitisation bonds to arrange funds from the international lenders for the micro-finance institutions of Bangladesh.
CRAB Managing Director and Economic Adviser Masihur Rahman and MF-CH CEO Steve Slingsby signed the deal on behalf of their respective organisations.
MF-CH works with the mission to broaden the availability of financial services to the micro-finance sector across the world. The company will also address the critical need for both process and portfolio quality transparency through the arrangement of bond-offering. As part of the arrangement with the MFIs of Bangladesh, MF-CH will provide technology to them to monitor the quality of the credits.
The deal between CRAB and MF-CH seeks to deliver a number of benefits to the potential investors, MFls and the arranger. CRAB ratings would serve as an objective and scientific input in decision making, assist in risk pricing, and serve as an input for setting collateral requirements for the borrowers and facilitate future deals.
Credit Rating Agency of Bangladesh Ltd (CRAB) and the US-based MicroFinance ClearingHouse (MF-CH) have recently signed a memorandum of understanding (MoU) in Washington under which CRAB will assign ratings to the proposed micro-finance securitisation bonds to arrange funds from the international lenders for the micro-finance institutions of Bangladesh.
CRAB Managing Director and Economic Adviser Masihur Rahman and MF-CH CEO Steve Slingsby signed the deal on behalf of their respective organisations.
MF-CH works with the mission to broaden the availability of financial services to the micro-finance sector across the world. The company will also address the critical need for both process and portfolio quality transparency through the arrangement of bond-offering. As part of the arrangement with the MFIs of Bangladesh, MF-CH will provide technology to them to monitor the quality of the credits.
The deal between CRAB and MF-CH seeks to deliver a number of benefits to the potential investors, MFls and the arranger. CRAB ratings would serve as an objective and scientific input in decision making, assist in risk pricing, and serve as an input for setting collateral requirements for the borrowers and facilitate future deals.