ITFC Maintains Moody’s A1 Rating with Stable outlook

Wednesday, November 14, 2018

Moody's Investors Service assigned a rating of A1 with stable outlook to the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank Group (IsDB). The rating is supported by ITFC's strong liquidity and medium assessment of capital adequacy and shareholder support.
According to Moody’s, “ITFC’s liquidity assessment of ’High‘ is supported by prudent treasury investment practices and recently updated liquidity management policies. ITFC’s liquidity position benefits from the absence of debt service requirements as of 2017, and takes into account the moderate expected recourse to borrowing resulting in a debt service coverage as a share of liquid assets that Moody’s expects to reach up to 180% by the end of 2020, a ratio comparable to other trade finance peers rated by Moody’s, and which reflects the comparatively short average maturity of liabilities.” The rating agency also emphasized that “ITFC’s “Medium” capital adequacy assessment reflects a very high asset coverage ratio with equity at almost 125% of development operations in reflection of the corporation’s absence of leverage.”
Eng. Hani Salem Sonbol, ITFC Chief Executive Officer, said “ITFC’s A1 rating with stable outlook for the second year is a testimony of the corporation’s financial strength and an acknowledgement of the relentless efforts to create optimal conditions required to meet our clients and shareholders’ expectations in terms of development impact and financial sustainability as we pursue our core mission of ‘advancing trade, improving lives’."

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