Mintos has upgraded the risk score for one of its loan originators and downgraded the rating for nine others in its latest review.
The European alternative lending marketplace’s risk score is calculated based on an originator’s loanbook quality and performance, how well it recoups bad debts, how it operates buybacks and its co-operation with Mintos.
Each originator that funds loans through Mintos is given a score ranging from 10 for a low-risk level to one for high.
Its latest risk score review shows Colombian lender Rapicredit had its risk score upgraded to seven.
Downgrades were given to Mexican lenders Commigo Vales, GoCredit and ID Finance, which also operates in Spain.
Creditstar in Estonia and Finland, Spain-based Dineo Credito, Polish lender Everest Finance and IDF Eurasia in Kazakhstan were also downgraded.
The downgrades reflect issues with loan performance, buybacks and cooperation with Mintos.
The Mintos Risk Score and subscores were withdrawn for one company – Podemos Progresar from Mexico – as it is not actively lending.
“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,” Mintos said.
“Accumulated pending payments had a negative impact on the buyback strength subscore for loans from particular lending companies.
Most changes are related to the financial standings and portfolio performance.
“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, the security package is still being updated for some lending companies, which affects the cooperation subscore.
“As soon as the security package is finalised, the score will be revaluated and published on the platform.”