Fitch Ratings upgrades Enda Tamweel’s rating to BBB with a stable outlook
The rating agency points out that the rating upgrade mainly reflects the improvement of profile funding of Enda in comparison to other national issuers including other financial non-bank institutions. This is due mainly to Enda’s access to finance from finance institutions as shown in the growing proportion of DFI finance in the composition of Enda’s finance.
While it notes that national ratings are an opinion of creditworthiness in relation to the universe of issuers and issues in a country, Fitch ratings believes that Enda will maintain good access to short and mid term funding despite the difficult context marked by the liquidity shortage.
Fitch Ratings affirms that Enda’s rating demonstrates its strength, profitability and financial stability in a distrust environment where Tunisia’s sovereign rating has recently been lowering.
Fitch Ratings notes that Enda has witnessed a rapid growth during the past years thanks to the evolution of its portfolio which has grown at an average rate of 28% over the past four years. The rating agency allocates this mainly to the insititution’s pioneering role in the financial and social inclusion of vulnerable populations.
The rating agency also notes that Enda remains the only source of funding for several borrowers in search of short and mid term working capital.
Enda is a key player in the ecomonic and social development with its active role in promoting self-entrepreneurship and self-employment.
Enda has served almost a million person, since its creation, and has issued more than 3.8 million loans. The institution integrates women’s emancipation challenges, youth leadership and the promotion of sustainable development in its trategy and relies on diversity and flexibility of the services it sets for a full social reach.
Enda is the first microfianance institution that serves 430 thousand clients with outstanding loans and an additional loan of 1.005 million dinards.
Fitch Ratings considers, in addition, that the quality of assets has remained solid and stable despite of implemented measures to contain the impact of the Covid-19 health crisis.
Fitch Ratings adds that Enda has also managed to generate strong profitability despite market volatility.
With this new disctinction, Fitch Ratings salutes the performance of Enda in terms of financian stability and financial stability.
This new distinction recently crowned a long term work, a determination and a desire for development at all levels in order to reach the best international standards.
The scoring of Fitch Rating follows the MSI 20000 certification, dedicated to the financial quality of companies. It reaffirms both Enda’s financial health and it’s governance and management system excellence.
About Enda Tamweel :
Created by the international non-govermental organization Enda Inter-arab, pioneer in the microfinance sector in Tunisia since 1995 with a portfolio of 430 000 active clients and an outstanding amount of more than 1005 million dinars, Enda Tamweel operates through a network of 103 agencies and 5 mobile counters serving mainly the isolated regions.
Enda Tamweel provides a strong contribution to the economical development of the country by ensuring the financial inclusion of vulnerable populations, favoring women, young people and rural populations.
By encouraging self-employment through the promotion of entrepreneurship, Enda Tamweel helps a large number of young people and women earning a living through their own efforts and reclaiming their autonomy.
About Fitch Ratings :
Fitch Ratings is an international financial credit rating agency based in London. Fitch ratings offers global perspectives shaped by strong local market einsight and credit market expertise.
The agency provides a context and insights which help investors make important credit judgments confidently.
