Moody’s Affirms ‘Aaa’ Long Term/P-1 Short Term Issuer Rating for Islamic Development Bank

Source: Islamic Development Bank

Wednesday, 24 August 2011

Jeddah, KSA – Moody’s Investors Service, one of the leading rating agencies in the world, on 24 August 2011 reaffirmed for the sixth consecutive year Islamic development Bank’s “Aaa” long term and P-1 short term foreign currency issuer rating with a “stable” outlook.
Moody’s stated that IDB’s rating reflects the presence of strong shareholder support, a high level of liquidity, the tested preferred creditor status and a low level of debt partly because of the Islamic (asset-backed) nature of its operations that is unique among MDB’s. Moody’s concluded that the bank’s risk profile is likely to remain healthy over the medium term and the prevailing situation in certain Member Countries appears unlikely to impact the Bank’s creditworthiness.

IDB is one of the few multilateral development financial institutions rated by the three leading international rating agencies – Standard & Poor’s, Fitch and Moody’s with the highest possible rating (Triple-A). Moreover, IDB has been recognized as eligible for ‘Zero Risk-Weight’ by Basel Committee on Banking Supervision in 2004 and the European Union in May 2007.

IDB is an international financial institution which started operations in 1975 with the purpose of fostering economic development and social progress of Member Countries and Muslim communities in non-member countries in accordance with the principles of Shari’ah (Islamic Law).

Dr. Ahmed Mohamed Ali, President of the IDB Group, praised the strong and generous support that IDB enjoys from its Member Countries, and congratulated the staff of the IDB Group for this achievement. He also considered it as an opportunity for IDB to reaffirm its pledge and endeavour to further the achievements of this noble institution through adherence to the highest levels of professionalism, due diligence and prudent practices while conducting tasks with integrity and sincerity. He noted that during the past year, IDB continued its reform process with the view to strengthen performance through completion of the first phase of the implementation of SAP – the world’s leading ERP solutions. This, along with the enhanced internal capacity and governance structures will help achieve greater developmental impact in consonance with the ‘Year 2020 Vision’ with the ultimate goal of making IDB a customer and quality focused organisation.

Categories: Economics, Islam, Saudi Arabia

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