S&P rates International Finance notes AAA

Standard & Poor’s said it assigned a preliminary AAA rating to the proposed U.S. dollar-denominated sukuk trust certificates to be issued by IFC Sukuk Co.

IFC Sukuk Co. is a special purpose vehicle that will enter into a sale and purchase agreement with International Finance Corp., a multilateral lending institution with a mandate of encouraging the growth and development of the private sector in developing member countries, principally by financing and investing in private-sector entities, without government guarantees, S&P said.

Under this agreement, the issuer will enter into a $100 million sale and purchase agreement with International Finance for a diversified portfolio of Sharia-compliant assets made of Murabaha receivables, Ijara assets, sukuk and shares, the agency said.

The issuer will also enter into a service agency agreement and a purchase undertaking with International Finance.

The ratings reflect sufficient and timely contractual obligations by International Finance for the repayment of the periodic principal amounts and the final principal amount, S&P said.

These obligations also will rank pari passu with International Finance’s other senior unsecured financial obligations, the agency added.

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