Moodys Affirms IsDB’s Aaa Rating with Stable Outlook

Jeddah, July 14, 2025 – Moody’s Ratings has completed a periodic review of the Islamic Development Bank (IsDB), reaffirming its Aaa long-term and P-1 short-term issuer ratings. The review confirms the Bank’s robust capital position, strong liquidity buffers, and sustained support from its member countries.

Moody’s notes that IsDB continues to maintain one of the strongest funding and liquidity profiles among its peers, supported by a very high level of liquid assets, low leverage, and ongoing general capital increases. The Bank’s status as a benchmark sukuk issuer further underscores its resilient market access. Despite challenges in conflict-affected regions, the Bank’s diversified sovereign portfolio and prudent risk management have contained broader asset performance risks.

Commenting on the outcome, Dr. Zamir Iqbal, Vice President of Finance at IsDB stated:

“This reaffirmation by Moody’s is a testament to our strong capital and liquidity position, our proactive risk management, and the continued confidence of our shareholders. We remain fully committed to preserving our financial strength while delivering impactful development financing across our member countries”.

The stable outlook reflects Moody’s expectation that capital adequacy will remain strong, backed by scheduled capital contributions and a continued focus on financial sustainability.

The IsDB remains amongst the most highly rated MDBs and the highest in the Muslim World. The ‘AAA’ rating enhances the Bank’s capacity to mobilize external resources to fulfil its development mandate and play a leading role in development of the Islamic Finance Industry.

The Bank has been rated Aaa by Moody’s since 2006.

For further information, please visit our website www.isdb.org or contact us by email on ratings@isdb.org.

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