IslamicFinance.de

According to Moody's Investors Service, Islamic Development Bank's (IsDB) credit strengths include a strong capital base, prudent financial and risk management policies. The bank's liquidity level is solid, which supports its Aaa rating and stable outlook. Moody's analyst Mathias Angonin said the weighted average rating of IsDB's shareholders is lower than other Aaa-rated development banks, but its 57 members are strongly committed to the organisation. This support is reflected in continued capital increases. The bank's paid-in capital rose to ID 5.1 billion at end-2016, from ID2.7 billion in 2007, and an additional ID 2.4 billion is expected over the next 10 years. Credit challenges include a risky operating environment as well as lower oil prices and the risks from geopolitical tensions. Nonetheless, its operational assets continue to perform well, with a very low level of impairment.