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. 

The information gathered during this process, together with the Kiva's new risk rating system and half-star support, has led us to revise Soro Yiriwaso's risk rating from 4 to 3 stars. The analysts have found that Soro Yiriwaso's risk variables, reviewed in the new risk rating model, were most representative of a 3-Star rating.

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.

Soro Yiriwaso has been informed of our analysts’ findings and their corresponding change in rating.

Soro Yiriwaso is a Malian microfinance institution. It began as a program initiated by the Sahel field office of the American non-governmental organization Save the Children. Soro Yiriwaso delivers solidarity-based credit and was officially recognized by the Ministry of Economy and Finance of the Malian Government on the 11th of July, 2003.

The mission of Soro Yiriwaso is to increase the economic opportunities of poor and disadvantaged Malians, especially women, by offering durable financial services.

To this end, Soro Yiriwaso provides a diverse range of products and services to its clients. The organization’s objectives are as follows:

• Facilitate the access of disadvantaged women to the resources and services they need in order to succeed in their income-generating activities;
• Foster solidarity and cooperation among its clients;
• Promote social and economic awareness among its clients; and
• Ensure its sustainability as an institution.

Soro Yiriwaso is a microfinance institution that works primarily in rural and semi-urban to provide underprivileged communities with access to financial services. As a rurally-focused microfinance institution, Soro Yiriwaso focuses on two areas:

The agricultural sector:

• The Prêt de Campagne (The Country Loan). This seasonal loan is disbursed to women living in rural areas and taking part in agricultural and livestock-raising activities. Clients are organized into associations with between 8 and 80 members. Often, the group who receives the loan is comprised of all the women in a given small village. Soro Yiriwaso hires trained agronomists to administer this loan so that loan officers can not only provide credit and financial advice, but help clients with problems they encounter with their crops.
• The Individual Loan for Corn Producers . This seasonal product is targeted to men and women who specialize in producing corn.
• The Individual Loan for Buying, Stocking and Commercializing Agricultural Products. This loan is provided to merchants specializing in purchasing, stocking and distributing agricultural products.

The commercial and small business sector:

• The Merchant’s Solidarity Loan. This small loan is targeted to groups of women who sell commercial goods. The loan does not require a material guarantee, but instead a solidarity-based guarantee.
• The Individual Loan for Merchants. This loan is disbursed to men and women with small-to-medium-sized enterprises in need of working capital or equipment. The loan requires a material guarantee of no less than 50% of the amount disbursed.
• The Individual Small Business Loan. This loan is provided to merchants wishing to reinforce their larger small businesses.

Apart from these primary products, Soro Yiriwaso provides a student loan. Since government scholarship funds are often distributed late, this loan helps Malian students meet their expenses until scholarship funds are made available.

Soro Yiriwaso provides financial services to the communities it serves through a network of 5 branch offices and two service points:

• Branch offices: Bougouni, Sikasso, Koutiala, Ségou and Fana.
• Service points: Ouelessebougou and Kolondieba.