Rating Process

E.Watch Rating Process

E.Watch Microfinance rating methodology integrates client protection and other social risks factors to the traditional financial analysis. Building on the social rating experience, it represents the coordinated answer from the microfinance rating agencies to the evidence that client protection and other social measures are essential to the long term success of the business and to preserve the image of the microfinance industry as a whole.


E.Watch rating process primary focuses on 7 Areas of analysis


  • External context
  • Governance and strategy
  • Organization and operations
  • Client protection
  • Assets quality and structure
  • Financial structure and management
  • Financial and operational results

The entire evaluation process from the pre-visit desk analysis to final report delivery is about 6-8 weeks


MFI Rating Process

Pre-visit data collection and desk analysis

After an MFI has hired E.Watch to evaluate their financial institution, they will receive a data request form from E.Watch rating evaluation consulting group. E.Watch performs a pre-visit desk analysis of data and information collected from the client.

On-site evaluation

For the on-site evaluation, two E.Watch analysts interview all levels of management and personnel. The analytical team will also visit several of the MFI’s branch offices. Interviews and visits are complemented by additional data collection including the sampling of client files and review of reports from the management information system as available.

Post-visit analysis and report writing

The on-site evaluation is followed by an analysis and review of all the information collected which is consolidated into a final report.

Client Feedback

Prior to publication, the MFI is provided with a draft version of the report to review to ensure that there were no errors or misinterpretations of information collected by E.Watch.

Rating Committee and report publication

The final rating grade is a result of careful analysis and discussion by an International Rating Committee, focusing on the key areas of analysis for each evaluation product. The International Rating Committee is composed of senior management and seasoned analysts from E.Watch’s different field offices to ensure consistent, robust analysis. E.Watch does not apply a rigid rating formula but considers the impact of all key areas of analysis to determine the final grade.