Motivated by the Islamic Development Bank’s strong asset performance, Moody’s Investor Services has maintained the financial institution’s AAA credit rating with a stable outlook.
IsDB announced in a press statement that the US-based agency has confirmed its short-term issuer rating at Prime-1, the highest grade available.
The statement also stated that Moody’s has rated IsDB AAA since 2006.
The agency states that AAA-rated liabilities are thought to be the greatest quality and have the least amount of credit risk, while Prime-1 indicates the best capacity to repay short-term loans.
IsDB is a multilateral development finance organization that was founded in 1973 and has its headquarters in Jeddah. Its primary area of expertise is Islamic finance for infrastructure development.
“Moody’s expectation regarding IsDB’s capital position and asset performance is reflected in the affirmation, which is supported by the bank’s strong liquidity and funding position, low funding costs, and its preeminent position as one of the few regular issuers of highly-rated benchmark-size sukuk in the international capital markets,” the statement from IsDB stated.
The financial institution went on to say that a number of general capital expansions by member countries have shown their track record of support, which contributes to its solid credit profile.
IsDB added that these capital additions are likely to keep its leverage ratio far below the median for multilateral development banks with AAA ratings.
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