September 11, 2011

As part of an ongoing effort to fully migrate risk ratings to our new and enhanced risk rating system, Kiva has conducted a re-assessment of the level of risk posed by this institution.

During this re-assessment, our analysts were able to gather updated operational and financial information about the institution, as well as speak with key members of the staff. 

Kiva's new risk rating system, which now includes half stars, has enabled us to display FRAC's risk rating with a higher level of granularity. As a result, FRAC's risk rating will now be displayed as 3.5 stars instead of 4 stars. 

We have prepared a blog post with more information on Kiva's new and enhanced risk rating system, along with a chart showing the relative magnitude of the overall changes for Kiva's portfolio.  To view that, please go here: http://www.kiva.org/updates/kiva/2011/09/07/kiva-risk-ratings-now-with-half-stars.html.

FRAC has been informed of the change in the display of their rating on Kiva's website.

Original Partner Description

Fundacion Realidad is an organization with 12 years of experience operating a variety of microcredit programs and other services to incubate and develop microenterprises in communities around the interior of the country, located in rural and semi-urban zones of Mexico.

Our mission is to offer financial and nonfinancial services to families that do not have access to formal banking services to improve their quality of life.

Our target market consists of men and women, heads of family, and elderly with the willingness and ability to repay, who wish to start a business, or have a small business, and need a small loan to invest in their economic activity.

Through the granting of group loans we support productive economic activities in trade, industry, services, and agriculture and livestock, such as the making of traditional sweets, handicrafts (clay objects and figures), textiles (spinning), raising and trade of livestock, selling traditional food, baking, tortilla making, etc.

We adapt to the needs of our market through:

• Solidarity Groups (Grupos Solidarios): Loans granted to groups of 4-10 people
• Communal Banks (Bancos Comunales): Loans granted to groups with 10-30 people

Fundación Realidad is a reliable and formally established non-profit organization that is committed to the development and wellbeing of our clients.

For more information:

Visit our website here

You can join others on Kiva lending to our entrepreneurs in Mexico by joining our lending team, Friends of Fundacion Realidad