Merrill Unit to Use New CDFI Ratings Tool

Merrill Lynch Community Development Co., Washington, D.C., has announced that it will use a new ratings tool to place $93 million with community development financial institutions (and mission-related community development entities) across the United States.The tool -- the CDFI Assessment and Ratings System, or CARS -- is a rating system developed by Opportunity Finance Network to aid investors and donors in their investment decision-making. "We believe CARS will reduce the due diligence burden on CDFIs, especially for those who have already been rated, as well as speed up MLCDC's approval process and facilitate the faster deployment of capital," said Dan Letendre, an MLCDC director and CARS advisory board member. MLCDC received a $93 million allocation under the New Markets Tax Credit program in June 2006, and will begin making loans and investments under the program in early 2007.