MOODY’S Investors Service announced it has assigned a first-time long-term issuer rating of A1 and short-term issuer rating of P-1 to the International Islamic Trade Finance Corporation, ITFC, a member of the Islamic Development Bank Group, IsDB. The outlook on the rating is stable, according to Moody’s press release dated October 26.
According to Moody’s, “The ITFC’s credit profile benefits from significant capital buffers, balanced by high concentration levels and a track record of legacy non-performing assets, albeit with the prospect of significant recoveries in the future. The corporation benefits from prudent treasury investment practices and adequate liquidity management policies, and from strong implicit member support in the absence of contractual support via callable capital.”
“The outlook for ITFC’s rating is stable, reflecting Moody’s expectation that the corporation’s leveraging of the balance sheet will remain contained and that the formation of new non-performing assets will remain muted and in line with other trade finance institutions in Moody’s rated MDB universe, while the main legacy exposures are being recovered or written off”, said the announcement.
Hani Salem Sonbol, chief executive officer, ITFC, welcomed the A1/P-1 rating by Moody’s and said “This investment grade rating assigned to ITFC by Moody’s denotes the corporation’s financial strength and fits well with our strategy to diversify our funding sources, increase our footprint in member countries and better serve our clients. This rating will make ITFC stronger and more impactful in the pursuit of our core mission – ‘advancing trade, improving lives’.”
– Nov 9, 2017 @ 16:48 GMT |