Bondster upgrades originator CrediFace’s rating to B+

Bondster has upgraded the rating of Peru-based originator CrediFace from B to B+, noting its strong financial performance.

The Czech peer-to-peer lending platform, which connects investors with loan originators worldwide, said that the Peruvian consumer lender was profitable in the first quarter of this year and maintains a low default rate for its products, with just 11 per cent of borrowers more than 30 days in arrears.

Bondster said that CrediFace is steadily building its portfolio, which now exceeds €1m (£856,918), while approving just eight per cent of loan applicants.

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Capital adequacy exceeds 17 per cent and liquidity indicators are at a good level.

Bondster said that its analytical team compiles credit risk ratings for all originators on its platform, assessing their ability to meet their obligations to investors, to meet liquidity needs and to have sufficient capital.

The firm said it continuously evaluates the financial condition of individual originators and adjusts the ratings accordingly.

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While it heralded CrediFace’s financial performance, it noted worsening economic conditions in Peru. The El Nino Costero extreme flood event in Northern Peru impacted economic activity in the country, and will continue to do so until the beginning of 2024, Bondster said.

Bondster also highlighted high inflation, tight monetary policy, social tensions and global recession as headwinds in Peru, alongside corruption and political instability.

However, it said that Peru remains an important player in the region and has the potential for further growth and development.

Bondster has welcomed a number of new originators to its platform of late, including Kazakhstan-based motor finance provider Jet Car and UK small- and medium-sized enterprise lender Huddle Capital.