Moody’s assigns 1st-time A1/P-1 rating to ITFC

Moody’s assigns 1st-time A1/P-1 rating to ITFC
The ITFC is a member of Saudi-based Islamic Development Bank Group

Riyadh – Mubasher: Moody's Investors Service on Thursday announced assigning 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), while giving the institution a stable outlook.

The ITFC is a member of Saudi-based Islamic Development Bank Group (IsDB).

“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,”  Moody’s said in its official report.

It added that the ITFC “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.”

Moody’s views the ITFC’s outlook as stable, forecasting that the corporation’s leveraging balance sheet will “remain contained”, while new non-performing assets “will remain muted”.

“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,” ITFC CEO Hani Salem Sonbol said, welcoming the ratings agency’s A1/P-1 rating.

He further added that the new rating with bolster the ITFC’s strength, making it “more impactful in the pursuit of our core mission – ‘advancing trade, improving lives’."

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Source: Mubasher

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