S&P Global Ratings Upgrades ICD's Credit Rating to 'A' from 'A-' with Stable Outlook
Rating upgrade reflects strengthened asset quality and sustained business growth
Jeddah, Saudi Arabia – September 10, 2025 – The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank (IsDB) Group, today announced that S&P Global Ratings has upgraded the Corporation's long-term issuer credit rating to 'A' from 'A-' and revised the outlook to stable from positive.
The upgrade recognizes ICD's significant progress in strengthening its balance sheet and expanding its development finance activities in accordance with Sharia principles across member countries.
Key Rating Drivers
S&P Global Ratings highlighted several key factors that supported the upgrade:
Substantial Asset Quality Improvement: ICD's nonperforming asset (NPA) ratio has declined dramatically to 5.0% in 2024, down from a peak of 24.3% in 2020. This improvement reflects the Corporation's successful implementation of comprehensive asset recovery and restructuring initiatives through its dedicated special operations division established in 2022.
Strong Business Growth: The Corporation achieved a 20% increase in disbursements to $527 million in 2024, reflecting robust expansion of its purpose-related financing activities. S&P anticipates ICD will continue to grow its development finance portfolio over the next three years.
Robust Financial Profile: ICD maintains extremely strong capitalization with a risk-adjusted capital ratio of 28.0% as of December 31, 2024, alongside high liquidity levels with liquid assets representing 53% of total adjusted assets.
Management Commentary
"This rating upgrade validates our strategic focus on strengthening asset quality while expanding our development mandate," said Dr. Khalid Khalafalla, Acting CEO of ICD. "The significant reduction in our NPA ratio demonstrates the effectiveness of our comprehensive balance sheet cleanup efforts and enhanced risk management framework."
"We remain committed to supporting private sector development across our 56 member countries through Sharia-compliant financing solutions, while maintaining the highest standards of financial discipline and governance," Dr. Khalafalla added.
Strategic Outlook
The stable outlook reflects S&P's expectation that ICD will continue to expand its loan book while maintaining current high levels of capitalization. The Corporation's strategy focuses on:
- Core Mandate Expansion: Continued growth in credit financing to corporates and small-to-medium enterprises via financial institutions
- Geographic Diversification: Expansion into high-growth regions including Central Asia and new markets in the Middle East and Africa.
- Risk Management Enhancement: Targeting higher-rated borrowers and reducing equity exposure
- Operational Excellence: Strengthening frameworks for risk appetite, credit risk exposure, and equity investments
Future Rating Scenarios
S&P outlined potential rating scenarios going forward:
Upside Potential: Further rating improvements could occur if ICD demonstrates a sustained track record of boosting purpose-related investments, particularly through high-quality projects that support its development mandate, while maintaining strong capitalization.
Downside Risks: Ratings could be lowered if ICD's purpose-related assets stagnate or decline materially, or if capital or liquidity positions deteriorate.
About ICD
Established in 1999 as part of the Islamic Development Bank Group, ICD is the leading multilateral development finance institution dedicated to promoting private sector development across member countries of the Organisation of Islamic Cooperation. All activities are conducted in accordance with Sharia principles.
ICD's membership comprises the Islamic Development Bank, 56 member countries, and five public financial institutions. The Corporation provides financing, investment, and advisory services to support sustainable economic development and poverty alleviation across its member countries.
Contact Information
Media Relations: Islamic Corporation for the Development of the Private Sector P.O. Box 54069, Jeddah 21514, Saudi Arabia – Email: icd.communication@icd-ps.org – Website: www.icd-ps.org
Investor Relations: Email: icd-capitalmarkets@isdb.org
This press release contains forward-looking statements. Actual results may differ materially from those projected. ICD undertakes no obligation to update any forward-looking statements.