S&P lowers ICD

S&P said it downgraded the Islamic Corp. for the Development of the Private Sector issuer rating to A- from A.

“The downgrade reflects our expectation that management’s strategy to increase purpose-related assets and expand the corporation’s non-financing and advisory activities have been slow, and we expect it to continue proceeding slower than planned, given institutional capacity constraints,” S&P said in a press release.

“ICD’s purpose-related assets as a percentage of total assets have steadily decreased over prior years, largely the result of revaluation of equity exposures and a strategy to increase liquid assets. In addition, total purpose-related assets, excluding equity, have remained relatively flat in nominal terms over 2017-2020. Combined, this indicates to us that the bank has a more Ltd. ability to fulfill its role and public policy mandate in member countries than we had previously assessed,” the agency noted.

The outlook is stable.

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