Moody’s Affirms AAA Credit Rating for Islamic Development Bank
In a recent announcement, Moody’s Investor Services has confirmed the Islamic Development Bank’s AAA credit rating with a stable outlook. This decision was influenced by the financial institution’s strong asset performance.
Top Tier Rating
The US-based agency affirmed IsDB’s short-term issuer rating at Prime-1, the highest tier available. IsDB has proudly held a AAA rating from Moody’s since 2006, signifying the highest quality obligations with low credit risk. Prime-1 indicates excellent ability to repay short-term debts.
Strong Financial Position
Founded in 1973 and headquartered in Jeddah, IsDB is a multilateral development finance institution specializing in Islamic finance for infrastructure projects. The institution’s capital position and asset performance are expected to remain robust, supported by strong liquidity, low funding costs, and regular issuance of highly-rated sukuk in international markets.
Member Country Support
IsDB’s strong credit profile is further enhanced by member country support through general capital increases. The institution’s leverage ratio is projected to remain below the median for AAA-rated multilateral development banks.
Global Reach
IsDB currently has 57 member countries, with Saudi Arabia holding the largest stake at 22.5% of total capital. Libya and Indonesia follow with 9.03% and 7.04% respectively. Since its establishment, IsDB has provided ethical financing to member nations for sustainable development and economic growth.
Commitment to Sustainable Development
IsDB remains dedicated to supporting member countries in achieving sustainable development and economic growth through strategic investments. Recent allocations include funding for green schools in Turkiye, oncology centers in Turkmenistan, and power network enhancements in Suriname.