Fitch rates MFO Crystal B

Fitch Ratings said it assigned a long-term issuer default ratings of B on JSC MFO Crystal with stable outlook.

The ratings reflect the business focus of Crystal on microfinance (MFO) lending in a high-risk operating environment in Georgia, rapid recent growth and market and refinancing risks resulting from the predominance of foreign-currency wholesale funding, Fitch said.

The ratings also factor in Crystal's sound performance to date, reflected in the company's solid asset quality, profitability and capitalization metrics, the agency said.

The ratings are constrained by the mono-line business model as Crystal is focused on micro lending in Georgia, Fitch said.

The franchise is only modest as Crystal accounts for 12% of total microfinance sector assets, the agency added.

The ratings also reflect significant growth from 2013 through 2016, although this was partially driven by local-currency depreciation, Fitch said.

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