Fitch Ratings gives an F1 for Islamic liquidity management corporation sukuk programme
KUALA LUMPUR: The International Islamic Liquidity Management Corporation (IILM), an international organisation that develops and issues short-term shariah-compliant financial instruments, has received a second international shortterm credit rating of F1 from Fitch Ratings for its US$4 billion short-term sukuk programme.
In a statement yesterday, IILM said the assignment of a second programme rating by Fitch marks a key step towards strengthening the IILM sukuk as a highly-rated, robust Islamic financial instrument for the benefit of cross-border liquidity management.
“The rating by Fitch reflects the intrinsic strengths of the IILM and its risk profile, and is expected to broaden IILM’s investor base, and thus, enhance the liquidity of the sukuk,” it said.
It said the IILM sukuk issuance programme benefits from 100 per cent liquidity, according to Fitch’s rating methodology, and is supported by 10 primary dealers’ commitment.
“Fitch also noted that the credit quality of each asset currently funded by IILM is commensurate with the F1 rating on the programme,” it said.
United Arab Emirates central bank governor and IILM chairman Khaled Mohamed Balama said the second rating received by the IILM from Fitch reaffirms the strong fundamentals of the IILM sukuk and solidifies the IILM’s sukuk programme that serves the global financial services market’s needs for shariah-compliant instruments.
“The IILM will continue to supply high quality shariahcompliant instruments to meet the ever-growing demands of Islamic investors,” he said.
Meanwhile, IILM chief executive officer Dr Umar Oseni said being given a second international rating from Fitch, one of the world’s top credit rating agencies, is a testament to the high quality of liquidity management solutions.
“Investors who have been eyeing the IILM’s Islamic papers but have yet to come on board can now be comforted and assured of its quality, with a second rating in place,” he added.