If you look at Mintos rating system Aforti Finance downgraded in March 2019 from B to C+, Rapido Finance downgraded in October 2019 from B- to C, and finally Metrokredit was downgraded from B- to C in November 2019. Aforti Finance is still rated C+, I am not quite sure why.
About 70% of the LOs are rated B or below. Are they at risk of defaulting? Perhaps, but since there are examples of ratings that do not make sense e.g. Aforti Finance is still rated C+ (I thought junk was rated D) maybe you cannot really use Mintos' rating system anyway.
It will be interesting to see how the three cases progress. I am just annoyed with myself that I have invested in Aforti on two platforms but I guess sometimes you have to learn the hard way.
And then let's see which LO is the next. If the LOs keep defaulting at this pace, I guess it will eventually be bad for business and Mintos will be forced to react. I just hope Mintos doesn't wait too long or I will have to pull out some of my investments
Post by southseacompany on Nov 30, 2019 11:56:31 GMT
Nexus has disappeared from the record like an executed politburo member from Stalin's official photographs. There must have been fraud or some kind of shenanigans going on for them to get scrubbed after a couple of days. Doesn't instill confidence in the due diligence process at Mintos. I wonder if they are ever going to tell us what went wrong, or will they just leave us guessing.
Regarding Nexus, we were first told that an announcement was about to be made. When that didn't happen we followed up and were told:
"After publishing the announcement about Nexus joining the Mintos marketplace additional aspects were identified within the context of offering investments in Nexus loans that needed to be addressed. Nexus loans from the Mintos marketplace were removed until this is resolved."
When we asked what the 'additional aspects were' there was no willingness to go into that. Very embarrassing but we can imagine...
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Latest updates to the Mintos ratings page includes discussion of Iute and Monego losing their licences, Nexus disappearing 3 days after joining, and the latest on Rapido, Aforti and Metrokredit defaults. On top of that scores for new joiners Creditter, Wowwo, Evergreen, and Dinerito, and various ratings changes....
I hope you update the scoring page now that Varks, Sebo, Dinero, Metrokredit, and Lendo are rolled up under Finko brand.
I have invested in Varks loans and to my understanding loan originator legal structures remains separate for each of the above mentioned originators. Still I have this nagging feeling that if the old Metrokredit defaults can it elevate the risks of Finko Armenian operations (old Varks)? I.e. is there now some group level obligations that were not there before?
I removed Finko from my autoinvest. Now I'm pondering should I sell those varks loans as I clearly don't understand well enough this new structure.