S&P puts ICD on negative watch

S&P said it placed the AA foreign-currency long-term issuer credit rating on the Islamic Corp. for the Development of the Private Sector (ICD) on CreditWatch with negative implications.

The CreditWatch placement follows the removal of the group credit profile from the ratings on the Islamic Development Bank, which was previously applied to encompass the potential support that could be provided to ICD if needed, S&P explained.

As such, the agency said it will review the ratings on ICD.

Currently, the ratings on ICD benefit from three notches of uplift from its stand-alone credit profile based on its previously considered strategic importance under the group rating methodology criteria, S&P said.

This support was based on an assessment of the Islamic Development Bank's role as the parent institution of ICD, the agency said.

Following statements made to the bank’s management, S&P said it no longer considers the bank to be ICD's parent institution.

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