ImpactBonds assesses a specific security within a dated offering. It asks whether the available evidence supports a reasonable expectation that contractual interest and principal will be repaid according to that security’s terms.
An issuer can have several bonds with different coupons, maturities, priority or collateral. Materially different terms can require separate assessments. An assessment remains a historical opinion as of its stated evidence cutoff; it does not become a permanent issuer rating.
Trace the repayment chain
The analyst follows the obligation from issuance through final maturity. Historical operations, cash generation, financial statements, debt-service obligations and liquidity help show what resources the issuer has generated and can access. The analysis examines security, senior claims, asset value, enforceability and possible recovery separately from the issuer’s stated purpose.
Material contracts can support future cash flows. Their counterparties, prices, duration, termination provisions and alignment with bond maturity matter. Guarantees or other third-party support count only to the extent that the obligation is enforceable and the supporting party has capacity. The analyst also examines bullet maturities and dependence on refinancing or future community-bond issuance.
A central maturity questionIf the issuer were unable to issue another community bond at maturity, what identifiable resources would allow existing bondholders to be repaid? Evidence may include cash or reserves, amortization, asset realization, committed facilities, or conventional refinancing capacity.
This framework guides a documented judgment. It does not imply that every criterion has a simple numerical cutoff or that the result is a guarantee.
Classifications
Not Rated
No ImpactBonds credit classification has been assigned to the specific security.
Philanthropic Grade
Following human analyst review, the available evidence does not meet the ImpactBonds standard supporting a reasonable expectation of repayment according to the security’s terms. The investment may nevertheless serve a philanthropic or mission-first purpose.
Impact Investment Grade
Following human analyst review, the available evidence supports a reasonable expectation of repayment of contractual interest and principal according to the security’s terms.
These are ImpactBonds classifications of repayment evidence for a security, not assessments of social or environmental impact, regulatory credit ratings or recommendations to buy, sell or hold.
Evidence standards
ImpactBonds distinguishes issuer-stated information, audited and reviewed financial statements, other third-party evidence, management forecasts, and separately identified analyst calculations and opinions. The Offering Statement is a core dated disclosure record for the Canadian offerings covered here; a human analyst assessment may also use other documented sources. Elsewhere, another disclosure document may serve that function.
Each assessment has a defined evidence cutoff. Later information is recorded separately rather than silently added to an earlier opinion. Reported numbers remain as reported, while any adjustments, calculations and judgments are labelled. Source documents retain provenance and page references where practicable. A missing schedule in one PDF is a limit on that PDF, not proof that an issuer has refused to disclose it.
Independence
ImpactBonds is independent of the issuers it covers. Issuers do not pay for ImpactBonds credit classifications and do not approve analytical conclusions before publication. An issuer may submit factual corrections or additional evidence; ImpactBonds determines whether and how that evidence affects the analysis. A material analyst relationship is disclosed beside the relevant assessment. Issuer participation is not a condition of coverage.