MARC Affirms IsDB’s AAA/MARC-1 Ratings and AAAIS Rating of MYR 400 Million Sukuk Wakalah Programme

Malaysian Rating Corporation (MARC) has affirmed Islamic Development Bank’s (IsDB) financial institution (FI) ratings of AAA/MARC-1 with a Stable Outlook. In addition, MARC’s AAAIS rating on the Sukuk Wakalah programme of up to MYR 400 million, issued by a trust established by IsDB, Tadamun Services, has been affirmed.

Ratings Rationale

The FI ratings are driven by IsDB’s preferred creditor status as a multilateral development bank established by the Organisation of Islamic Cooperation (OIC), as well as its low leverage position and sound liquidity. IsDB has issued USD 1.5 billion worth of Sukuk during the year, the proceeds of which were mostly used to support its members to manage the impact from the COVID-19 pandemic. Financial s...