EstateGuru, an online marketplace for property-backed loans, has partnered with Moody’s to rate the securities offerings listed on the crowdfunding platform.
Mihkel Stamm, CEO of Estateguru, said it is very important that investors on crowdfunded offerings have access to the best possible information. He shared that the ratings may help encourage institutional investors to participate on the platform
“Moody’s rating provides another important perspective to assess the reliability of each project and make informed investment decisions,” said Stamm.
If EstateGuru is able to garner institutional interest, this could be a significant factor in platform growth.
EstateGuru says that the ratings on each offering will be displayed for all registered users of the online investment platform. The rating methodology is said to take into account multiple factors, including project location, value, cash flow, collateral type, loan terms, and other relevant credit inputs and data points.
Ratings will rank from Aaa to B1 with an expected probability of default capped at a max 5% – as determined by Moody’s.
“We will not offer new projects with higher risk indicators than described on our platform starting from the end of July,” added Stamm.
EstateGuru accepts retail investors. Based in Tallinn, EstateGuru has offices in Riga, Vilnius, Helsinki, London and Berlin.
