According to Mr. Tristan Cooper, a Moody's Vice President / Senior Analyst and author of the issuer of the recently released report on IsDB, the bank's capital base is already very strong compared to other MDBs and is getting stronger, with a decision in 2006 to double the Bank's authorised capital and increase its paid-in capital by around 50% over a five-year period.
"Although the weighted average sovereign credit quality of the IsDB's member countries is lower than for other Aaa-rated MDBs, IsDB members are strongly committed to the organisation, as illustrated by the recent capital increase agreement," said Cooper.

He also noted that despite a risky operating environment, inherent in its role as a development bank, the IsDB's operational assets continue to perform well, with a very low level of impairment.

He added that Moody's notes that the most risky, concessional portion of the bank's operational assets is soon to be transferred to a separate poverty reduction fund that will be financially independent, resulting in increased profitability and an enhanced risk profile".
The report stated that the Bank enjoys a high level of liquidity and a very low level of debt, partly because of the Islamic, asset-based nature of its operations that is unique among MDBs. "Although the Bank plans to issue more Sukuks (Islamic bonds) over the medium term, its prudent financial policies and the ongoing increase in its ample capital base will ensure that its gearing ratios remain considerably lower than most other MDBs," said Cooper.

Commenting on the report H.E. Dr. Ahmad Mohamed Ali, IDB President pointed out that the new ratings complements the same level of rating assigned to IsDB by Standard & Poor's for the five consecutive years.

Standard & Poor's AAA long-term and A-1+ short-term issuer ratings assigned to IsDB are based on the bank's capital stock, minimum ratio of operational assets to shareholders' rights compared to all international financing institutions with the highest rating, operational assets portfolio's unparalleled performance notwithstanding part of its financing extended to least developed countries.