Fitch Affirms Islamic Development Bank at ‚AAA‘, Outlook Stable

Posted by on Jun 21st, 2013 and filed under Islamic Finance. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

Fitch Ratings has affirmed the Islamic Development Bank's (IDB) Long-term Issuer Default Rating (IDR) at 'AAA' with a Stable Outlook and Short-term IDR at 'F1 '. IDB's ratings are underpinned by strong intrinsic features, primarily excellent capitalisation. The ratio of equity to assets has remained above 60% since inception. The ratio of debt to equity is low, at 57.5%. The bank also maintains a comfortable level of liquid assets, which more than fully covered its short-term liabilities. Moreover, credit risk is moderate. Fitch deems other risks like credit risk on treasury assets, interest rate risk and foreign exchange risk as well as the bank's risk on equity investments under control. Shareholders' support is also supportive of the rating since their willingness to support the bank is expected to remain strong.


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