Company Rating v2

Applies to any loan offered after July 2020

We've updated our rating model, and we have reviewed how we rate borrowers, specifically those in the Solar Home Systems (SHS) sector. Based on our learnings, experience and information from the sector we have improved our assessment by adding a new area, Shareholders & Governance, and tweaking the weighting of each area. The purpose of the rating is to give an overall indication of our assessment of the solar partner’s ability to repay their loans.

These are the areas and weightings we assess that result in a score ranging from 0—100.

32.5% Financial Performance

We look at a minimum of 1 year of financial information. We review their sales, profitability, cash runway & liquidity ratios, leverage ratios, and ability to service the debt.

20% Shareholders and Corporate Governance

Our focus is on the quality of shareholders and their ability to inject further capital should the need arise. In addition, we also review the quality of the risk management and board of directors.

15% Portfolio Quality

We look at the level of unpaid solar home systems, collection efficiency, growth in installed solar home systems and agents commission structures.

10% People / Management

We review the experience and competence of key management personnel, gaps in management, staff exits, and the quality of their communication with Trine.

10% Financial Management

We look at their debt repayment history, sources of debt and equity, seniority of debt, additional guarantees, quality of the finance function, foreign currency risk mitigation and credit enhancement tools.

7.5% Market & Environment

We assess the operating environment in which the partner is based. Factors such as competition, enabling regulatory framework, expansion to other countries.

5% Processes Controls & Systems

This includes the customer screening process, data integration, logistics management, insurance over their assets and system warranties.

The final score corresponds to a rating according to the following breakdown. This is the rating that is presented to Trine investors.

*Please note that Trine does not invest in companies that rate below B-

It’s important to note that some uncertainty is always present in these calculations and these ratings do not represent any kind of guarantee. Your capital is at risk, returns are not guaranteed and you should never invest more than you can afford to lose.

Company Rating v1

Applies to any loan offered before July 2020 

These are the areas we assess with the weighting that results in the final score:

30% Financial Performance

We look at a minimum of 1 year of financial information. We review their sales, gross profit margin, profitability break-even point liquidity ratios, leverage ratios and ability to service the debt.

25% Portfolio Quality

We look at the number of systems sold and installed, the default rate, repayment tenor and average delayed payment period.

15% People / Management

We review the work experience and competence of key management personnel, the decision-making process, communication skills and organisational structure.

10% Financial Management

We look at sources of debt and equity, cash management, financial audit process, business model and refinancing risk.

10% Processes Controls & Systems

Customer management, customer acquisition process, commission payment structure, after the sale service, insurance over their assets and recycling measures.

10% Market & Environment

We assess the operating environment in which the partner is based. Factors such as competition, enabling regulatory framework, mobile money penetration and local currency fluctuations.

The final score corresponds to a rating according to the following breakdown. This is the rating that is presented to Trine investors.

A+  100-90
A    89-80
A-   79-70
B+  69-60
B    59-50
B-   49-40
C+  39-30
C    29-20
C-   19-10
D    9-0 

It’s important to note that some uncertainty is always present in these calculations and these ratings do not represent any kind of guarantee. Your capital is at risk, returns are not guaranteed and you should never invest more than you can afford to lose.

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