Mintos loans have become less risky after the latest assessment of the European alternative investment marketplace’s loan originators.
The Latvia-based firm introduced risk scores for each of its originators that funds loans through its platform last year.
The scores range from 10 for a low-risk level to one for high and are reviewed on a quarterly basis.
They are 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.
The latest review has upgraded eight out of 93 loan originators including Credisimo in Bulgaria and E Cash in Albania, giving them a higher score and therefore a lower risk level.
Only one originator, Russia’s Lime Zaim, was downgraded to a six.
Scores were removed for E Cash in Ukraine as it is winding down.
Cream Finance also lost its score as it is not currently actively lending in the Czech Republic and is winding down its operations in Denmark.
“The world is becoming better at living in the pandemic, vaccination is progressing globally, and restrictions on movement and activity are becoming more relaxed,” Mintos said.
“Loan default rates have now reverted to pre-Covid levels, and the ratio of non-performing loans continues to decline, signalling lower risk for investors.
“As a result, positive developments are influencing the profitability of some of the evaluated lending companies, resulting in a positive impact across risk subscores, but mostly causing changes in the loan portfolio performance and buyback strength subscores.”
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