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Fitch affirms Islamic Corporation for Development’s A+ rating with stable outlook

ISTANBUL: Fitch Ratings said Wednesday it affirmed the Islamic Corporation for the Development's (ICD) long-term foreign currency issuer default rating at A+ with a stable outlook. The rating agency said ICD's ratings are backed by the support it receives from its key shareholders, Islamic Development Bank and Saudi Arabia, that owned 38% and 24% of ICD's paid-in capital by the end of 2023, respectively. ICD, in addition, has continued to make progress in "de-risking its operations" in the past three years, while Fitch expects this trend to continue over the medium-term as ICD continues to refocus its operations back toward its core mandate of lending, rather than more risky equity investments, and toward more highly-rated borrowers.? However, ICD's solvency is improving, but remains constrained by 'high' credit risk, according to Fitch. "Equity investments as a share of total banking exposures remain 'high' at 24% at end-2023, despite falling from 41% in 2017," it said in a statement. "However, Fitch exp ects ICD's equity participations to decline, given its focus on lending operations." Source: Anadolu Agency