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 Credituyo's risk rating with a higher level of granularity. As a result, Credituyo's risk rating will now be displayed as 2.5 stars instead of 2 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.

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

Partner Description

Kiva’s partnership with Credituyo replaces the partnership with Fundacion para la Vividenda Progresiva (FVP). In early 2010 Credituyo merged with FVP, a microfinance institution that was founded in 2002 to help improve the quality of life of the working poor in the northern border region of Mexico. At the time, FVP had been a Kiva partner for over four years and had funded $1.6M to 2,550 entrepreneurs through Kiva.

After the merger of FVP and Credituyo, Kiva conducted on-site due diligence on the new merged entity. The risk rating given to the merged entity was 2 stars, compared to a 3 star rating given to FVP when they started working with Kiva in 2006. This is due to an improvement in the current risk model that looks at more criteria, compared to the one used to evaluate FVP in 2006. (Credituyo's risk rating has since improved to 3 stars under the new risk model.)

With the acquisition of FVP, Credituyo now has seven branches in the cities of Monterrey, Apodaca, Guadalupe, Villa de Juarez, Nuevo Laredo, Piedras Negras and Ciudad Acuña. Credituyo will continue to fund loans for housing in the border region through Kiva, and will utilize Kiva to fund other innovative projects, such as green loans and loans for start-up businesses.

Credituyo is a microfinance institution that provides financial access and education to micro entrepreneurs and local families in Mexico with a social and commercial mission.

Credituyo was created in the city of Monterrey, under Mexican law as Servicios Financieros de Desarrollo Comunitario, S.A. de C.V. SOFOM ENR in 2006. Credituyo’s objective is to offer best-in-class financial services to Mexican families that do not have access to formal banking services.

Mission

We provide financial services and education to drive social, economic, and environmental development in our communities.

Vision

We shall be the best financial services institution in the communities where we operate:

• As a result of our social awareness and responsibility
• Because we improve the quality of life of our clients
• Because our commitment to our employees' wellbeing and self-realization.
• Because of adequate and sustainable returns for our investors.

Credituyo has adapted and continues to adapt to the needs of an evolving microfinance market by providing loans for micro and small businesses, entrepreneurs, education, and home improvement. In addition, Credituyo offers voluntary micro life-insurance policies and free financial education. The loans are given to individual small business owners and to solidarity groups of 6 to 15 women.