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IFN Investor

IDB unfazed by higher NPF and escalating leverage; firm grasp on ‘AAA’ rating

SAUDI ARABIA: Despite a sharp rise in debt-to-equity ratio and comparatively weaker credit quality of treasury investments, the IDB has managed to secure top ratings yet again. As an institution with one of the strongest capitalization in the universe of multilateral development banks (equity to asset ratio stood at 50% as at the end of November 2014), the IDB was recently assigned long-term ‘AAA’ issuer default rating (IDR) and short-term ‘F1+’ IDR by Fitch, predicated upon the assumption that financing....

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