Fitch affirms Islamic Development Bank at AAA with stable outlook

By Ovunc Kutlu

ISTANBUL (AA) - Fitch Ratings said Wednesday that it affirmed the Islamic Development Bank's long-term issuer default rating at AAA with a stable outlook.

The global rating agency said the bank's credit profile is supported by its robust liquidity buffers and ongoing capital increases.

It noted that Indonesia has been granted a permanent seat on the board as a result of its increased presence as a shareholder in the bank.

The Islamic Development Bank's 'aaa' solvency assessment is underpinned by its "excellent" capitalization with a usable capital to risk-weighted assets ratio of 43.5% at the end of 2023 and an equity-to-adjusted-assets ratio of 37.1%, according to the agency.

"We expect both metrics to improve slightly over the medium term, and to remain well above the 'excellent' thresholds of 35% and 25%, respectively," it said in a statement.