CSPI Ratings Assigned A(sf) Ratings to Micro Connect’s DRO-backed Senior Loans
[HONG KONG, December 21, 2023] CSPI Ratings has assigned a preliminary rating of A(sf) to Micro Connect 2023-1 DRO-backed Class A Senior Loans, which are backed by a portfolio of Daily Revenue Obligations (DROs) listed on the Micro Connect (Macao) Financial Assets Exchange (MCEX).
This is the first instance of a financial product with DRO as its underlying asset to receive an international rating. It serves as a crucial reference for expanding the DRO-based investment and financing market for micro and small businesses.
DRO is an innovative product based on daily revenue, poised to address the financing faced by small businesses, by offering flexible funding that aligns with their cash flow patterns. For investors, DRO offers a unique investment opportunity with differentiated returns, exposure to China’s economy, and the potential for high returns.
According to the rating report, the underlying portfolio of DROs is well-diversified, encompassing a broader range of small businesses from various industries and regions. This diversification decreases the risks associated with individual businesses and leads to more stable and predictable cash flow distributions.
The rating reaffirms Micro Connect’s strength in capital, risk, and liquidity management, increasing the visibility and influence of MCEX in the international capital markets. The rating will also help reduce financing costs for micro and small businesses and support their business development.
Please find the report here for more details: https://www.cspi-ratings.com/rating-actions/rating/CSPI-Ratings-Assigned-Asf-Preliminary-Ratings-to-Micro-Connect-2023-1-DRO-backed-Class-A-Senior-Loans.html
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About Micro Connect
Micro Connect connects global capital with small businesses. Officially launched on August 3, 2023, Micro Connect Macao Financial Assets Exchange (MCEX) is a global exchange platform for the revenue-sharing asset class and represents Macao’s new endeavor to promote the development of innovative finance and Micro Connect’s mission to provide micro and small businesses with access to sustainable and affordable funding. As of the end of December 2023, more than 10,000 micro and small businesses had raised nearly RMB 4 billion from global investors through the platform.
For more information, please visit www.microconnect.com and follow our journey on LinkedIn: Micro Connect | 滴灌通, and WeChat: 滴灌通Micro Connect.