Trine assesses the risks of the solar partners we lend to and allocate a score that we present as a rating from A+ to D; A+ being the lowest risk and D being the highest.
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.
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.