We are pleased to announce that Genesis LA has received a rating of
AA2 from Aeris, the information service for community investors. Aeris (formerly known as CARS®) provides comprehensive, third-party assessments of community development financial institution (CDFI) loan fund financial strength and performance and impact.
"This rating is a testament to Genesis LA's growth as a CDFI and the ongoing hard work of our board and staff to create a financially sound and highly impactful organization," said Richard Maire, Chair of the Genesis LA Board of Directors. "This strong rating advances our long term commitment to work hand-in-hand with our local partners to expand the community development infrastructure in Los Angeles County."
The rigorous Aeris ratings process is widely seen as demonstrating a CDFI's commitment to transparency and accountability with regard to its financial performance and impact in the community. The rating encompasses two main components: (1) an Impact Performance Rating, which measures how well a CDFI does what it says it's trying to do and (2) a Financial Strength and Performance Rating, which assesses overall creditworthiness. This was Genesis LA's first Aeris rating.
Genesis LA's financial strength was particularly noteworthy. Among the more than 90 Aeris rated CDFIs across the nation, fewer than 8% have a Financial Strength and Performance Rating that is higher than Genesis LA's "2" rating. Within our peer group of Aeris-rated CDFIs - those with less than $25 million in total assets - Genesis LA ranks in the top 20% and no CDFI in the peer group has a higher rating within the Financial Strength and Performance Rating category.
Moreover, only 6% of CDFIs within the peer group have an Impact Performance Rating that is higher than Genesis LA's "AA" rating. Below is how Aeris defines Genesis LA's rating:
Impact Performance: AA. A CDFI in this group has clear alignment of mission, strategies, activities and data that guides its programs and planning. It accurately tracks appropriate output data that indicate that it is using its resources effectively to benefit its target populations or communities in line with its mission.
The CDFI uses its data on an ongoing basis to adjust strategies and activities in accordance with its desired impact. It may track a limited number of impact indicators as well, but impact data tracking may not be rigorous or consistent.
Financial Strength and Performance: 2. A CDFI in this group is fundamentally sound. It exhibits solid financial strength, performance, and risk management practices relative to its size, complexity, and risk profile. Challenges are well within the board of directors' and management's capabilities and willingness to strengthen. The CDFI is stable and is capable of withstanding fluctuations in its operating environment. Generally, most FSP scores for this CDFI are 2 or better, although it may have received a 3.