Fitch Ratings has affirmed Islamic Development Bank's (IsDB) Long-Term Issuer Default Rating (IDR) at 'AAA' with a 'stable outlook'.
This rating shows IsDB’s stable and assured support for all our Member Countries, at a time of global crisis and financial pressure due to the COVID-19 pandemic. Assessments by Fitch Ratings show that IsDB Group's stability and 'AAA' rating will not be affected by the global impact of COVID-19.
Furthermore, the 'AAA' rating is indicative of the Bank’s overall strength, financial sustainability and competitiveness.
The Bank is currently rated by the three renowned international rating agencies; Standard & Poor’s Global Ratings, Fitch Ratings and Moody’s Ratings. In addition, the Bank is also rated by Malaysia Rating Corporation (MARC).
All four international agencies currently rate the Bank at 'AAA' with a 'stable outlook', acknowledging the extremely strong financial and Business profile, that is underpinned by robust financial and non-financial metrics.
To earn a “AAA” rating, an institution must demonstrate:
i) Extremely strong financial profile measured by capital adequacy, funding, and liquidity metrics;
ii) A very strong business profile underpinned by strong policy mandate, share-holders support, Preferred Creditor Status (PCS), robust governance including quality, and track record of management as well as quality and strength of financial and risk management policies and systems.
One distinguishing feature is the Bank’s ability to maintain AAA rating on standalone basis, i.e. none of shareholders are rated higher than the Bank.
AAA” rating enables the Bank to raise capital at significant low cost in global financial markets to pass-on the savings to the Member Countries (MCs) for their essential development needs.
The “AAA” rating consolidates the Bank’s reputation as a globally trusted development partner and enhances its ability to attract off-balance sheet resources.
The Bank is the only Islamic as well as based on South-South cooperation financial institution in exclusive club of global AAA rated financial institutions.”
Despite negative pressures on asset quality and capitalisation as a result of the global pandemic, Fitch expects the overall impact on the bank's credit prole to remain limited with solvency metrics slightly deteriorating but remaining at a level consistent with the bank's Long-Term IDR of 'AAA'.
Our Member Countries & Ummah can be assured of continued, consistent support from IsDB Group.
Fitch Ratings is a leading providers of credit ratings, commentary and research for global capital markets, and has endorsed IsDB Group's operations with a 'AAA' rating, with a stable outlook.