On October 1, 2020, Moody’s Investors Service reaffirmed the A1 ‘Perspective Stable’ rating awarded to the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IDB) Group. This rating is based on “significant capital”, “prudent cash investment practices and adequate liquidity management policies” and “very high implicit support from shareholders”. According to Moody’s, “The implementation of a rigorous liquidity policy since November 2018, as part of the transition to corporate debt, supports the strength of the company in terms of liquidity and sources of funding.”
Moody’s also said: “Beyond improving the liquidity risk policy, management has also strengthened its capacity to manage credit risk which results in the absence of new bad debts since 2015”. ITFC Managing Director Hani Salem Sonbol said: “The A1 ‘Long Term’ rating with a stable outlook awarded to ITFC for the fourth consecutive year, and during the unprecedented economic crisis stemming from the Coronavirus (COVID-19) pandemic, demonstrates ITFC’s quality planning, resilience in the face of growing challenges, and relentless efforts to preserve its financial viability while fulfilling its mandate of ‘advancing trade, improve the living conditions’. This year and every year, ITFC further expands its reach to respond to the growing funding requests from its member countries ”.
Kapital Afrik intends to deliver strategic financial information to executives and managers, through a daily newsletter and a website that covers all African finance.