Microfinanza Rating Confirms the Financial Soundness of Albaraka and the Fulfilment of its Social Mission: Sustained Development for Financial Inclusion in Morocco

Microfinanza Rating, an international specialized microfinance-rating agency, has confirmed the excellent operational and financial performances of Albaraka for the year 2015, and has assigned it an “A” rating. It has also raised its social rating from « BB » to « A », thus placing the Institution at its highest tranche of the social rating scale, thanks to its good systems of management of social performance and customer protection.

The rating agency considers that Albaraka has succeeded in setting up « a sound risk management framework as well as effective tools », which resulted into « a good control of the portfolio quality and growing profitability ». Albaraka has also strengthened its governance policies and its internal control system. This rating highlights the performances of Albaraka and confirms the continuous growth of its sustained and controlled activity of financing micro-entrepreneurs and very small enterprises.

Throughout the year 2014, Albaraka has financed nearly 120,000 clients with a turnover of 1.2 billion dirhams. It also brought its portfolio outstanding up to 1 billion dirhams, a 21% increase. In addition, the portfolio at risk over 30 days has been improved, going down from 5.4% in 2013 to 3.5% by the end of 2014.

As to the social rating component, Microfinanza pointed out that Albaraka has succeeded to strengthen its social performance management systems and has achieved a perfect appropriateness of its customer protection policies. In fact, and according to the agency, « the commitment of the Board of Directors and the General Management toward the social mission is good ». In addition, « the current procedures and policies of Albaraka are satisfactory with respect to customer protection against the risk of over-indebtedness and the cost of services offered is appropriate ».

The Institution thus confirms that it has fulfilled its basic social mission which aims to contribute to economic and social integration and financial inclusion of micro-entrepreneurs that are excluded from classical channels of financing.

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