Kenya Water Service Provider Creditworthiness Index Report
The Kenya water supply and sanitation (WSS) sector has been on a long path of facilitating commercial lending to Water Service Providers (WSPs). A key component of this effort is the evolution of rating the credit risk of WSPs for local lenders. However, the trade-off in credit rating WSPs is to...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/02/25911569/kenya-urban-commercial-financing-water-sanitation-water-service-provider-creditworthiness-index-report http://hdl.handle.net/10986/23754 |
| Summary: | The Kenya water supply and sanitation (WSS) sector has been on a long path
of facilitating commercial lending to Water Service Providers (WSPs). A key
component of this effort is the evolution of rating the credit risk of WSPs for local
lenders. However, the trade-off in credit rating WSPs is to provide the best credit
analysis to help lenders assess the creditworthiness of WSPs, yet have a system
that is simple and affordable enough to replicate on an annual basis. To solve this trade-off, the Water Services Regulatory Board (WASREB)
and the Water and Sanitation Program of the World Bank have created a
Creditworthiness Index for the WSPs in Kenya. In lieu of performing a full
shadow rating analysis, which is much more thorough yet also more time-consuming
and costly, the Creditworthiness Index provides a simplified snapshot
of the financial and operational performance of WSPs. |
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