Moody’s Ratings has completed a periodic review of the Islamic Development Bank (IsDB), reaffirming its Aaa long-term and P-1 short-term issuer ratings with a stable outlook. The review points to IsDB’s robust capital position, strong liquidity buffers, and continued support from its member countries. Moody’s highlighted IsDB’s very high level of liquid assets, low leverage, and ongoing general capital increases as key drivers of one of the strongest funding and liquidity profiles among peers, alongside resilient market access supported by its status as a benchmark sukuk issuer. The review also noted that, despite challenges in conflict-affected regions, a diversified sovereign portfolio and prudent risk management have helped contain broader asset performance risks, while the stable outlook reflects expectations that capital adequacy will remain strong, supported by scheduled capital contributions and a continued focus on financial sustainability.
Islamic Development Bank 2025-07-14
Islamic Development Bank’s issuer ratings reaffirmed by Moody’s at Aaa and P-1 with stable outlook
Moody’s reaffirmed the Islamic Development Bank's Aaa long-term and P-1 short-term issuer ratings with a stable outlook, citing robust capital, strong liquidity, and member support. Key factors include high liquid assets, low leverage, and benchmark sukuk issuer status. Despite challenges in conflict regions, prudent risk management and a diversified sovereign portfolio have maintained asset performance stability.