Mubasher: Moody's Investors Service has assigned provisional (P)A1 senior unsecured long-term ratings, both foreign and local currency, to the $3 billion trust certificates program of KFH Sukuk Company, a special purpose vehicle incorporated in Dubai International Financial Centre (DIFC) by Kuwait Finance House (KFH).
Moody’s noted that the (P)A1 ratings assigned to these sukuk certificates are at the same rating level as the A1 long-term deposit ratings of KFH, according to a recent statement.
This reflects Moody's view that the sukuk certificate holders will be exposed to KFH's senior unsecured credit risk, will not be exposed to the underlying performance risk of the sukuk assets, in addition to having preferential claim or recourse over the sukuk assets.
“The proceeds of the sukuk certificates will be used by the Issuer to acquire a beneficial interest in a portfolio of Shariah compliant assets. These sukuk assets will form part of 'Wakala' and 'Murabaha' portfolios which will be managed by KFH as Servicing Agent and Purchaser, respectively on behalf of the Issuer,” the statement said.