Fitch Ratings affirms OPEC Fund rating at ‘AA+’

The international ratings agency Fitch has affirmed the OPEC Fund’s long-term rating at “AA+” with stable outlook. Its latest report, published today, says: “Fitch views OPEC Fund’s ‘excellent’ capitalization as a key rating strength.” The report notes that the OPEC Fund’s “successfully issued” inaugural benchmark bond raised US$1 billion in January.

A team of Fitch rating experts visited the OPEC Fund for the annual ratings update recently. In their assessment they state that the institution’s long-term issuer default rating remains anchored in its standalone credit profile, which is characterized by a solvency profile of “aa+” and a liquidity profile of “aaa”.

The OPEC Fund also has a “low risk profile”, according to the rating agency, with 65 percent of total exposure towards sovereign borrowers, strong preferred creditor status as an international financial institution and a “low ratio” of non-performing loans of 1.4 percent at the end of 2022.

Fitch assessed the OPEC Fund’s business environment as “medium risk” and upgraded its assessment of the institution’s access to capital markets to “moderate” following the successful execution of the bond issuance. Due to a “very limited” debt burden, the OPEC Fund is expected to retain a “comfortable liquidity buffer”.

OPEC Fund Director-General Abdulhamid Alkhalifa said: “The affirmation of our strong rating is testament to the financial strength of our institution, which allows us to deliver on our development mandate at a time of global volatility. Robust fundamentals are the foundation for solid support for our partner countries, where the demand for our work is high.”

OPEC Fund Assistant Director-General Tarek Sherlala added: “We are very pleased with the renewed endorsement by Fitch. It strengthens our determination to continue with the growth agenda of the OPEC Fund into a larger and even more impactful multilateral development bank. Our successful inaugural bond issuance was an important milestone step towards achieving that goal, and we continue to focus on strengthening our presence in the capital market.”

About the OPEC Fund

The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed more than US$24 billion to development projects in over 125 countries with an estimated total project cost of US$190 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA, Outlook Positive by S&P. Our vision is a world where sustainable development is a reality for all.