Posted on November 7, 2007 by muslimstoday
For the sixth consecutive year the Jeddah-based Islamic Development Bank (IDB) maintains top credit rating by Standard and Poor’s. In its annual report on international finance institutions, Standard & Poor’s reaffirmed its top credit rating of (AAA) for the long term, and (A-1+) for the short term, for the Islamic Development Bank whereas the future outlook of the Bank is rated as “Stable”. Standard and Poor’s reaffirmed the Bank’s rating among eight multilateral development finance institutions achieved the same level of rating.
According to Standard and Poor’s credit analyst Larry Hays, the high ratings on most supranational institutions reflect two factors: financial profiles much stronger than those of commercial financial institutions and strong shareholder support from member countries. “All MDFIs maintain capital ratios stronger than those of commercial institutions, in most cases supplemented by callable capital which shareholders agree to provide, if necessary to prevent a default” said Mr. Hays.