Feller.Rate HOPE SPA FUND.
The Tetetle
of Risk PRESS RELEASE
FELLER RATE RATIFIED THE CLASSIFICATION OF
Sun Í BBB BBB
ORE SOLVENCY OF FONDO ESPERANZA SPA IN “BBB”. THE
‘Stable negative expectations
BBB BBB Bond Line Prospects Changed to “Stable”
e BBB /Level2 – BBB/Level 2 SANTIAGO, CHILE – May 06, 2022. Feller Rate ratified the solvency rating
trading of Fondo Esperanza SpA (Fondo Esperanza) and its public offering instruments
(see list). The outlook was changed to “Stable”.
The classification assigned to Fondo Esperanza considers an adequate support
equity, together with a business profile, generation capacity, risk profile and
Funding and liquidity all evaluated in moderate. The classification also recognizes the
support from its controlling shareholder, BBVA Microfinance Foundation.
Fondo Esperanza is a microfinance institution that delivers comprehensive products and services
for entrepreneurs and micro-entrepreneurs in sectors with limited access to banking and
with a high degree of informality. By its type of business, the entity has a size
reduced in the financial system, although it exhibits a relevant position in its niche of
market. The loans granted are concentrated in microcredits, under the modality
of Communal Banking that consists of the voluntary union of a group of 18 to 25 people
that assume a commitment of solidarity co-endorsement among the participants, so that
A highly atomized and short-term portfolio is observed.
The capacity to generate results recovered significantly at the close of
2021, after deteriorating the previous year due to the health crisis. In particular, in
2020 The contraction of commercial activity affected the high operating margin, which did not
was able to absorb the increase in provisioning expenditure in the face of deteriorating
Payment of customers. This generated a loss for the year of $3.823 billion. In
Meanwhile, in 2021, the entity’s profitability recovered, standing somewhat above the
levels prior to the health crisis. The greater dynamism of commercial activity
coupled with good customer payment behavior and support expenses
contents, allowed to recover the generation capacity. As of December 2021, the
Final income was $1.84 billion with an average return on total assets of
2.8% (1.6% in 2019).
In line with the improved profitability, Fondo Esperanza’s equity base is
increased in 2021 holding on to adequate ranges that support the
operation. At the end of 2021, total equity totaled $18,978 million (growth
of 10.7% nominal) with a debt ratio, calculated as total liabilities
on equity, around 2.3 times.
After a significant deterioration in portfolio quality in 2020 given the context
A considerable improvement in non-performing loans was observed in 2021. The largest
liquidity observed in the market derived from the contributions of the State to households, the
Withdrawals from pension funds and improved credit origination contributed to
that Fondo Esperanza’s portfolio quality was at historic lows at closing
of 2021. Thus, the arrears greater than 30 days on gross placements were in ranges of
0.5%, lower than in 2020 (7.6%); while the arrears greater than 90 days was
0.1% (1.2% in 2020). On the other hand, the coverage of provisions was high and was located
1.8 times for arrears greater than 30 days and 10.1 times for arrears greater than 90 days
(1.0 times and 6.2 times at the end of 2020, respectively).
Fondo Esperanza has been able to gradually diversify its sources of
Financing in recent periods, forming a less funding structure
exposed to a specific source. As of December 2021, the largest proportion of
Total liabilities came from loans with promotional entities, representing a
50.1% of total liabilities. These entities include loans with CORFO, Foundation
South Wind, Gawa and FIS. In addition, the entity issued trade bills in December
www.feller-rate.com
Feller Rate FONDO ESPERANZA SPA.
The Tetetle
of Risk PRESS RELEASE
2020 to a term of two years representing an obligation of $ 7,899 million
equivalent to 18.3% of total liabilities at the end of 2021. The entire issue
was acquired by the International Finance Corporation (IFC).
The liquidity of the institution is observed at levels appropriate to its size and level of
activity. As of December 2021, funds available on hand represented 16.4%
of total assets. Meanwhile, the average monthly collection was $ 14,003
million allowing to cover the monthly maturities. This is complemented by
approved bank lines with seven banks for a total amount of $23 billion,
of which 26.8% were used.
For 2022, the administration foresees a good commercial dynamism that will allow it to
continue to grow in its operation and resume levels of placements more similar to
what was exhibited in periods prior to the health crisis. This will strengthen the capacity of
Revenue generation giving sufficient slack to absorb the advance in spending by
risk. In this context, the current quality of the portfolio contributes to an increase
Controlled expenditure by provisions.
Fondo Esperanza is 51% owned by the BBVA Microfinance Foundation; entity without
profit-making, of an autonomous nature, constituted by the BBVA Group in 2007. The
The foundation operates through six microfinance institutions in Latin America. The percentage
The remainder belongs to the Hogar de Cristo.
PERSPECTIVES: STABLE
The “Stable” perspectives assigned to Fondo Esperanza recognize the progress in the
activity and the recovery of results in 2021, complemented by a good
Risk management for the portfolio of placements.
Feller Rate expects the bank to continue strengthening its activity, with a risk of
Bounded portfolio. It is also relevant that debt levels are at
the ranges observed in the last period.
ANALYSIS EQUIPMENT:
= Andrea Gutierrez – Principal Analyst
= María Soledad Rivera – Secondary Analyst
= Alejandra Islas – Senior Director
The opinion of the rating agencies does not in any case constitute a recommendation to buy, sell or hold a particular instrument. The analysis is not the result of an audit carried out at the
issuer, but is based on public information sent to the Commission for the Financial Market, to the stock exchanges and on that voluntarily provided by the issuer, not being the responsibility of the classifier the
Verification of the authenticity of the same.
The information presented in these analyses comes from sources considered highly reliable. However, given the possibility of human or mechanical error, Feller Rate does not guarantee the accuracy or completeness of the
information and, therefore, is not responsible for errors or omissions, nor for the consequences associated with the use of that information. Feller Rate ratings are an appreciation of the
solvency of the company and the securities it issues, considering its capacity to meet its obligations under the agreed terms and deadlines.
Reproduction in whole or in part is prohibited without the written permission of Feller Rate www.feller-rate.com
Link to the file in CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=5806d0fac974f7418d64905aa702fe16VFdwQmVVMXFRVEZOUkVsM1RsUmplRTUzUFQwPQ==&secuencia=-1&t=1682376108
