The rating reflects Reinvestment Fund asset quality, profitability, liquidity, and overall management
Philadelphia, March 12, 2018 –Reinvestment Fund announced today that its ‘AA’ issuer credit rating has been affirmed by S&P Global Ratings. Reinvestment Fund is a social enterprise lending organization and among a handful of such institutions that has been rated by S&P Global Ratings. This rating is a powerful recognition of Reinvestment Fund’s demonstrated ability to meet its financial commitments through the strategic investment of capital to revitalize struggling communities.
“We are pleased that S&P Global Ratings has maintained its outlook on our financial strength,” said Don Hinkle-Brown, President and CEO of Reinvestment Fund. “The rating was foundational to our $50 million bond issuance last spring. While it has been key to contextualizing our work in new capital markets, we are also very grateful for the hundreds who currently invest in us and continue to believe in our strength, impact and mission.”
Reinvestment Fund pools investments from a range of sources to support its financing activity aimed at catalyzing change in distressed communities that do not have access to traditional capital sources. Since Reinvestment Fund’s founding 33 years ago, its investors have supported the deployment of $2 billion in community investments across the country. In 2017 alone, Reinvestment Fund provided $202 million in financing.
The strong, investment-grade credit rating from S&P Global Ratings helps potential investors understand Reinvestment Fund and lowers barriers for engagement. The rating reflects the consistency of Reinvestment Fund’s financial position, which has steadily grown over the past five years. S&P Global Ratings also emphasized the strength of Reinvestment Fund’s lending diversity, which ranges from housing to schools to grocery stores.
“The stable outlook reflects our view of Reinvestment Fund’s consistent profitability, high-performing loans, minimal loan loss exposure, and sufficient equity to cover potential losses,” said Alán Bonilla, Director at S&P Global Ratings. “Despite operating during national economic and real estate crises in the past decade, Reinvestment Fund has maintained steady net income amid low returns on low-risk investments.”
The ‘AA’ credit rating will continue to facilitate new partnerships with investors—thereby equipping Reinvestment Fund to build on its successes, pioneer valuable innovations in community development finance, and continue to expand its impact through strategic investment that increase opportunity and wealth for people and placed in need nationwide.
About Reinvestment Fund
Reinvestment Fund is a catalyst for change in low-income communities. We integrate data, policy and strategic investments to improve the quality of life in low-income neighborhoods. Using analytical and financial tools, we bring high-quality grocery stores, affordable housing, schools and health centers to the communities that need better access—creating anchors that attract investment over the long term and help families lead healthier, more productive lives. To learn more about Reinvestment Fund, visit www.reinvestment.com.
Kavita Vijayan, Reinvestment Fund