Fitch Ratings Confirms AA+ Rating for IFAD

Fitch Ratings confirmed the International Fund for Agricultural Development’s (IFAD) Long-Term Issuer Default Rating (IDR) at ‘AA+’ with a Stable Outlook.

According to Fitch’s Rating Action Commentary, “IFAD’s AA+ Long-Term IDR continues to be anchored on its Standalone Credit Profile (SCP). IFAD’s SCP assessment is driven by its solvency (aa+) and liquidity (aa+) profiles, which are unchanged from last year.”

In addition, Fitch expects IFAD’s equity/assets ratio and the fund’s usable capital/risk-weighted assets ratio “to remain well above the ‘excellent’ thresholds in the medium term, despite the fund gradually increasing its leverage.”

Fitch Predicts Slow Economic Growth for Nigeria in 2023

This news comes as IFAD, a UN specialised agency and international financial institution, embarks on an ambitious replenishment of its funds for the period 2025-2027, with goals to deepen its impact and help millions more people move out of poverty and hunger – now more important than ever as the number of hungry rises, poverty remains intractable and climate change intensifies in many parts of the world.

“The affirmation of our strong rating reflects the solid financial capacity of the institution to continue servicing our recipient countries within a very uncertain economic outlook. This is a testament to IFAD’s financial evolution and shall constitute an additional incentive to the continuing supportive response we are seeing from our Members during the ongoing replenishment consultations,” said Hernán Danery Alvarado, IFAD’s Associate Vice-President of IFAD’s Financial Operations Department and Chief Financial Officer and Controller.