National CDFI Also Receives Highest Rating from Aeris
LIIF’s continued financial strength, even amid the economic uncertainty brought on by the COVID-19 pandemic, was recently recognized by S&P, which upgraded the organization from an “A-” to an “A” rating. In addition, Aeris, the leading independent rating service for both financial and impact investments, reaffirmed LIIF’s “AAA” financial rating.
S&P raised both LIIF’s long-term issuer credit rating and series 2019 sustainability general obligation bonds rating to “A” with a stable outlook.
Aeris’ grade is their highest financial rating. This is consistent with the annual ratings that LIIF has received since our first rating in 2004.
“These ratings confirm LIIF’s strong financial position, which is vital to continue – and deepen – our impactful community development work,” said Daniel A. Nissenbaum, LIIF’s CEO. “From a place of financial stability, we are able to be more creative in our partnerships and innovative in our financing solutions. We look forward to more investments in community-driven solutions that solve for racial equity, while managing calculated risks so that both our impact and financial outlook are sustainable.”
According to S&P, these ratings reflect LIIF’s:
- “Strong 36-year history of loan performance, including through the COVID-19 pandemic, highlighted by one of the lowest delinquency rates of rated CDFIs”
- “Adequate and growing capital available to absorb loan losses at the current rating, with ratios in line with similarly rated peers”
- “Financially self-sufficient business model, as evidenced by a strong net interest margin in 2020,” with the investment in NAHT viewed as “a credit positive that will generate ongoing net income and diversify LIIF’s revenue sources”
- “Prudent management of debt and a strong liquidity position”
LIIF’s joint venture with NAHT and SAHF, Strategic Plan and consistency in attracting grant capital were listed as top reasons for confidence in LIIF’s strategy, management and financial outlook.
“This is validation of the high-quality credit underwriting and asset management work that LIIF’s origination and portfolio team bring to our work every day in the communities that we serve, and that is the foundation of our financial strength and performance,” said LIIF’s CFO Giles Coates.