Moody's rates IFFIm sukuk certificates Aa1

Moody's Investors Service said it assigned a Aa1 senior unsecured rating to the trust certificate issued by IFFIm Sukuk Co. III Ltd., a special purpose vehicle established in the Cayman Islands by the International Finance Facility for Immunisation Co. (IFFIm).

The ratings reflect the strong commitment on the part of its sovereign donors, as well as its ample liquidity, Moody's said.

The agency said World Bank's role as treasury manager and the policies it implements add institutional strength to IFFIm's credit profile and ensure appropriate levels of liquidity to cover upcoming debt-service requirements.

The rating on the trust certificates is at the same level as the long-term senior unsecured rating of IFFIm, as the sukuk holders will effectively be exposed to IFFIm's senior unsecured credit risk, Moody's said

The proceeds will be used by the issuer to purchase eligible commodities, which will then be sold to IFFIm at a pre-specified deferred price, the agency said.

Credit challenges include the high concentration of donor pledges, particularly from France and the United Kingdom, Moody's said.

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