Moody’s reaffirms APICORP Aa2 rating with stable outlook

apicorpThe Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution, has announced that its ‘Aa2’ rating with a ‘stable’ outlook was reaffirmed by Moody’s Investor Service despite current economic and market shocks

According to Moody’s, “The credit profile of Arab Petroleum Investments Corporation (APICORP) reflects its high capital adequacy, supported by moderate leverage, robust asset quality, low levels of nonperforming assets, and a very strong liquidity and funding profile, underpinned by diversified funding sources and increased availability of liquid resources to cover upcoming net cash outflows. APICORP’s shareholder support is derived from the presence of callable capital and creditworthy shareholders.

The coronavirus outbreak and the related oil price shock pose risks to asset performance, but [APICORP’s] track record of resilience to shocks and strong quality of management mitigate some of these risks.”

Ahmed Ali Attiga, CEO of APICORP, commented, “APICORP’s concerted efforts to diversify the asset portfolio both sectorally and geographically, coupled with our already strong financial position, have been key in maintaining our status as the only financial institution in the MENA region with an ‘Aa2’ rating, even against the current backdrop of global market challenges.”

“Moreover, APICORP maintains very strong partnerships in the energy sector and enjoys Preferred Creditor Status in its Member Countries. These factors, alongside strong underwriting standards, resilient financing structures and prudent provisioning policies, ensure the continued integrity of the institution’s balance sheet position and robustness of its profitability,” Attiga added.

This was driven by Corporate Banking and Treasury and Capital Markets, whose gross income increased 32 per cent and 24 per cent y-o-y to reach US$201mn and US$80mn, respectively.

Moreover, APICORP recently announced a landmark increase in callable capital to US$8.5bn, as well as a significant increase in authorised and subscribed capital, further bolstering its financial sustainability and resiliency.

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