Fitch Affirms MFO Crystal at ‘B’, Outlook Stable

London-07 June 2018: Fitch Ratings has affirmed JSC MFO Crystal’s (Crystal) Long-Term Issuer Default Ratings (IDRs) at ‘B’ with a Stable Outlook.

The affirmation of Crystal’s Long- and Short-Term IDRs reflects the stability of the company’s business model, risk appetite and financial performance. The ratings also reflect Crystal’s focus on microfinance lending in the relatively high-risk operating environment in Georgia, recent rapid growth (46% on average for the last four years) and market, and refinancing risk arising from a currency mismatch of assets and liabilities and predominance of wholesale funding. The ratings also factor in Crystal’s sound reported asset quality metrics, reasonable profitability and capitalisation.

“Maintaining the credit rating is a very positive news. This enables Crystal to attract funding on favorable terms to on-lend to our customers in order to support them in developing their business activities and generate more revenues’’ – said Archil Bakuradze, Founder and Executive Chairman of MFO Crystal.

MFO Crystal is fast growing and dynamic microfinance institution supporting micro and small businesses and contributing towards sustainable economic development. The company supports entrepreneurs and smallholder farmers in realizing their business potential, reaching financial stability and improving their living standards.

The company manages more than USD$100 million in total assets (including portfolio of GEL 251m, with PAR>30 1.13%), has 950+ employees, 60 regional branches and serves more than 77,000 clients across Georgia.