Moody's assigns first-time issuer rating of A1/P-1 to the International Islamic Trade Finance Corporation, Outlook Stable
The corporation benefits from prudent treasury investment practices and adequate liquidity management policies, and from strong implicit member support
This rating will make ITFC stronger and more impactful in the pursuit of our core mission – ‘advancing trade, improving lives’
Moody's Investors Service (www.Moodys.com) announced it has assigned 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) (www.ITFC-IDB.org), a member of the Islamic Development Bank Group (IsDB) (www.IsDB.org). The outlook on the rating is stable, according to Moody's press release dated October 26, 2017.
According to Moody’s, “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. The corporation 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.”
“The outlook for ITFC's rating is stable, reflecting Moody's expectation that the corporation's leveraging of the balance sheet will remain contained and that the formation of new non-performing assets will remain muted and in line with other trade finance institutions in Moody's rated MDB universe, while the main legacy exposures are being recovered or written off”, said the announcement.
Chief Executive Officer, ITFC Eng. Hani Salem Sonbol welcomed the A1/P-1 rating by Moody's and said “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. This rating will make ITFC stronger and more impactful in the pursuit of our core mission – ‘advancing trade, improving lives’.”
Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).
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About the International Islamic Trade and Finance Corporation (ITFC):
The International Islamic Trade Finance Corporation (www.ITFC-IDB.org) is an autonomous entity within the Islamic Development Bank (IsDB) Group. ITFC commenced operations in January 2008 with the purpose of consolidating all the trade finance businesses that used to be handled by various windows within the IsDB Group. The consolidation of IsDB Group’s trade finance activities under a single umbrella enhanced the Corporation’s efficiency in service delivery by enabling rapid responses to customer needs in a market-driven business environment.
As a leader in Shari’ah-compliant trade finance, ITFC deploys its expertise and funds to businesses and governments in its Member Countries. With the vision of being the leading the provider of trade solutions for OIC Member Countries’ needs, the Corporation helps entities in Member Countries gain better access to trade finance and provides them with trade development programmes in order to help them compete successfully in the global market. Operating to world-class standards, ITFC promotes IsDB developmental objectives through its two main pillars, Trade Finance and Trade Development, to fulfil its brand promise of ‘Advancing Trade & Improving Lives’.