Mubasher: Moody's Investors Service said that the Islamic Development Bank's (IsDB) credit profile is enhanced by its strong shareholder support, robust capital base and prudent financial and risk management policies, according to a report published Wednesday.
IsDB's operational assets continue to have good performance, with a very low level of impairment, despite facing a risky operating environment, geopolitical tensions in the MENA region, and lower oil prices.
“The IsDB's Aaa rating outlook is stable, reflecting Moody's expectation that credit trends are likely to be in line with the current rating over the outlook horizon,” the report said.
The bank's gross operational assets have been steadily growing over time, rising 11.7% year-on-year in FY 2013/2014, but the pace of that growth will likely slow in the coming few years.
IsDB’s ratio of total borrowing to usable equity soared to 101% at the end of FY 2015/2016 from 79.5% at the end of FY 2013/2014, Moody’s report said.
“The overall credit quality of the bank's portfolio has been relatively solid, with sustained low levels of sustained assets. It asset portfolio is also well diversified in different countries and sectors. Its liquidity is solid, with liquid assets making up 23.6% of total assets,” Moody’s added.
