Enterprise Community Loan Fund Receives Favorable “AA-” Rating from S&P Global for Stable Outlook, Prudent Growth Strategy and Strong Social Mandate
COLUMBIA, Md. (May 21, 2018) – One of the largest nonprofit loan funds in the country, Enterprise Community Loan Fund (ECLF) has earned an “AA-” issuer credit rating from S&P Global Ratings. According to S&P Global, this investment-grade rating reflects ECLF’s “very strong capacity to meet financial commitments.”
S&P Global’s rating overview highlighted ECLF’s “experienced leadership and management team” and recognized its “overall asset quality, operating performance, debt profile, and market position.” In its positive assessment, the ratings agency cited ECLF’s prudent growth strategy; strong social mandate and level of capital; financially self-sufficient business model; careful risk management; and higher rates of return than similarly rated community development financial institutions (CDFIs).
Although there are more than 1,000 U.S. Treasury Department-certified CDFIs in the U.S., ECLF is one of only a handful to be rated by S&P Global. A subsidiary of Enterprise Community Investment (ECI), ECLF is part of the Enterprise family of companies (Enterprise). Notably, when assigning ECLF’s AA- credit rating, S&P Global excluded from consideration ECLF’s relationship to these other companies, signaling its strength as a stand-alone entity.
“S&P Global’s rating of Enterprise Community Loan Fund shows that investing to increase opportunity in low-income communities can also be smart financially,” said Lori Chatman, president, Enterprise Community Loan Fund. “Enterprise Community Loan Fund’s history demonstrates how private capital can improve the lives of low-income people by financing the development of well-designed affordable homes, the expansion of community-based health centers that provide affordable, accessible and culturally competent care regardless of the patient’s ability to pay, the delivery of educational programming structured to ensure college preparedness, and grocery stores located in food deserts.”
ECLF lends to affordable housing developers (whether community-based, nonprofit, or mission-aligned for-profits), community organizations and other partners to increase opportunity in low-income communities. It has invested more than $1.6 billion, including in the development or renovation of over 100,000 affordable homes nationwide, the provision of 15,000 educational seats, and health care centers that have enabled 450,000 patient visits.
ECLF is a member of the Opportunity Finance Network, an AERIS-rated CDFI, and, for the last three years, has been selected for ImpactAssets 50, an annually updated list that offers a gateway into the world of impact investing. ECLF’s loan portfolio has grown nearly 50 percent since 2013, and over its history, it has made loans in 47 states, the District of Columbia, and Puerto Rico. Its current portfolio spans 23 states.
Quotes from Standard & Poor’s reprinted with permission of Standard & Poor's Financial Services LLC, a wholly owned subsidiary of S&P Global Inc. Copyright@2017. All rights reserved.