Fitch affirms Islamic Development Bank

Fitch Ratings said it affirmed Islamic Development Bank's AA issuer default rating and F1+ short-term rating. The outlook is stable.

Fitch said the ratings are based on the strong support from the bank's member countries, its extremely low leverage, high liquidity and prudent risk management policies.

The ratings also take into consideration the debt the bank plans to raise on the capital markets to fund the development of its operational assets. According to its five-year strategic plan for the years 2005 through 2009, it has planned to raise $4.7 billion. Although the growth in debt load will be accompanied by a substantial increase in both callable and paid-in capital in 2006, Fitch said the debt load will translate into higher gearing measures.

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