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- S&P upgrades OPEC Fund rating to 'AA+/A-1+' Outlook Stable
S&P upgrades OPEC Fund rating to 'AA+/A-1+' Outlook Stable
December 20, 2023: The international ratings agency S&P Global Ratings has raised its long-term issuer credit rating on the OPEC Fund to “AA+” from “AA”. S&P also affirmed its “A-1+” short-term issuer rating and assigned a stable outlook in its latest report issued today.
The S&P assessment underlines that “the upgrade reflects its view of OPEC Fund’s ‘strengthened policy relevance’, which is illustrated by a step-up in loan book growth over the past two years and its expectation of continued dynamic disbursements from 2024-2026”.
OPEC Fund Director-General Abdulhamid Alkhalifa said: “This rating upgrade confirms the strength of our strategy and the effective delivery of our development mandate. It is a testament to our excellent financial standing and strong fundamentals, which allow us to significantly step-up support for partner counties and the global development agenda.”
OPEC Fund has an “extremely strong financial risk profile” according to the rating agency, anchored in its “very strong” liquidity position and geographical diversification. The agency also states that the OPEC Fund now has established capital market access via benchmark and commercial issuances and significant capacity to support the step-up in lending activity.
The new rating comes a week after the OPEC Fund’s December 14 Governing Board meeting, when the institution announced the approval of more than US$440 million in new development financing, bringing the total approved loan amount to US$600 million for 18 projects in the final quarter of 2023. Since its establishment in 1976, the OPEC Fund has disbursed over US$24 billion in over 125 countries, supporting the delivery of the global sustainable development agenda and addressing global challenges such as climate change and food security.
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 Stable by S&P. Our vision is a world where sustainable development is a reality for all.