The rating on the program is equal to the issuer credit rating on IsDB. With each sukuk issuance under the program, IDB Trust Services Ltd. purchases a portfolio of sukuk assets from IsDB. The purchase price is funded by the sukuk proceeds.
The sukuk assets were originated and are serviced by IsDB. The profits generated on the sukuk assets are used to make periodic distribution payments on the notes. At maturity of the notes issued under the program, IsDB is obliged to purchase back from IDB Trust Services Ltd. the outstanding sukuk assets for an amount equal to the principal repayment together with any unpaid profits due to the noteholders.
In addition, IsDB grants a noninterest-bearing liquidity facility to IDB Trust Services Ltd., which can be drawn if the profits on the sukuk assets are insufficient to pay periodic distribution payments on the sukuk.
The equalization of the rating on the program, and notes issued hereunder, with the issuer credit rating on IsDB is based on our view that the full and timely payment of periodic distribution and principal on the sukuk ultimately depend on IDB Trust Service Ltd.'s recourse to IsDB's obligations under the program, including IsDB's obligation to provide the liquidity facility and to repurchase the sukuk assets.
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Islamic Development Bank's IDB Trust Services sukuk issuance program 'AAA' rating affirmed
- United Arab Emirates: Saturday, August 29 - 2009 at 09:03
- PRESS RELEASE
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Standard and Poor's Ratings Services has affirmed its 'AAA' senior unsecured debt rating on the increased $1.5bn Islamic trust certificate issuance program of IDB Trust Services Ltd., a special-purpose entity incorporated in Jersey that raises funds for Islamic Development Bank (IsDB; AAA/Stable/A-1+).
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Posted by Siba Sami AmmariSaturday, August 29 - 2009 at 09:03 UAE local time (GMT+4)
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Standard & Poor's is the leading provider of financial market intelligence to customers in the Gulf's credit risk management, wealth management, and data and information markets. Since entering the region in the early 1990's, Standard & Poor's has become the largest provider of credit ratings in the G.C.C, rating 114 issuers. In equity markets, Shariah-compliant versions of Standard & Poor's global and regional equity market indices - S&P 500, S&P Europe 350, S&P Japan 500 and S&P/IFCI GCC - have created new opportunities for Islamic investors to benchmark their international investments and for asset managers to create new investment products serving the Islamic community. Standard & Poor's Fund Services launched a qualitative fund management rating service for regional asset managers in 2007. For further details on Standard & Poor's regional capabilities please visit http://www.gcc.standardandpoors.com
Press office contacts:
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