SOVEREIGN AND SUPRANATIONAL

23 January 2024

International Finance Corporation – AaastableUpdateUpdate following rating affirmation, outlook unchanged

CREDIT OPINION

Summary
The credit profile of the International Finance Corporation (IFC) reflects a robust capitalbase, a very strong liquidity and funding position, strong risk management, and thepresence of highly rated shareholders with a strong willingness and capacity to support thecorporation. These strengths mitigate a riskier business model than that of other multilateraldevelopment banks (MDBs) and the lack of callable capital.

RATINGS

IFC
Rating Outlook
Long-term Issuer

Aaa

STA

Exhibit 1

Short-term Issuer(P)P-1--The IFC’s credit profile is determined by three factors

Analyst Contacts
Kathrin+44.20.7772.1383
Muehlbronner
Senior Vice President
kathrin.muehlbronner@moodys.com

Capital adequacy

Liquidity and funding

a1

aaa

Preliminary intrinsic financial strength

Qualitative adjustments

aa2

+1

Adjusted intrinsic financial strength

Strength of member support

aa1

High

Dylan Walsh+1.212.553.3583
Ratings Associate
dylan.walsh@moodys.com
Mauro Leos
+1.212.553.1947
Associate Managing Director
mauro.leos@moodys.com
Marie Diron+44.20.7772.1968
MD-Global Sovereign Risk
marie.diron@moodys.com
CLIENT SERVICES
Americas1-212-553-1653

Asia Pacific852-3551-3077

Japan

81-3-5408-4100

EMEA

44-20-7772-5454

Scorecard-Indicated Outcome Range
Aaa-Aa2

Source: Moody's Investors Service

Credit strengths» A strong capital position, with low leverage and best-in-class risk management» Ample liquidity buffers, and access to a deep and diverse global funding base» Highly rated shareholders’ strong capacity and willingness to support the institution,
despite the lack of callable capital

Credit challenges» Relatively high credit risk compared to peers, given the IFC's private-sector mandate» Significant share of relatively illiquid equity investments

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Rating outlook
The Aaa rating and stable outlook have been affirmed on 19 January, reflecting our expectation that the IFC will maintain its solid
capital adequacy and liquidity buffers. We also expect the IFC’s prudent risk management practices and its shareholders' capacity andwillingness to provide financial support to remain strong over the coming years.

Factors that could lead to a downgrade
Downward pressure on the rating could emerge in the event of a substantial and multiyear deterioration in asset quality andperformance, combined with significantly higher leverage. Such a scenario could occur if the IFC expanded rapidly into countries with amuch weaker credit profile or if it substantially increased its exposure to higher-risk equity investments. Evidence of waning shareholder
support would also be credit negative; however, we consider such a scenario to be remote, also because of the current capital increase.

Key indicators
Exhibit 2
International Finance Corporation

Total Assets (USD million)
Development-related Assets (DRA) / Usable Equity [1]Non-Performing Assets / DRA
Return on Average Assets

2018

2019

2020

2021

2022

2023

94,272.0

99,257.0

95,800.0

105,264.0

99,010.0

110,547.0

182.7

172.6

186.0

159.8

151.3

163.4

2.0

3.4

4.8

1.5

0.9

0.8

1.4

0.1

-1.7

4.2

-0.5

0.6

Liquid Assets / ST Debt + CMLTD

362.4

442.5

330.2

451.6

397.9

392.8

Liquid Assets / Total Assets

48.1

49.5

48.2

48.9

46.8

42.9

Callable Capital / Gross Debt

0.0

0.0

0.0

0.0

0.0

0.0

[1] Usable equity is total shareholder's equity and excludes callable capital

Source: Moody's Investors Service

ProfileThe International Finance Corporation (IFC) is the private-sector arm of the World Bank Group (WBG). While membership is open only tomember countries of the International Bank for Reconstruction and Development (IBRD, Aaa stable), IFC is a legal entity that is separate anddistinct from the other members of the WBG, with its own Articles of Agreement, share capital, financial structure, management and staff. The
institution invests in companies through loans, equity investments, debt securities and guarantees. In addition to deploying its own resources,
it seeks to mobilise private investment into emerging markets, and has built a strong track record of mobilisation. It also increasingly focuseson capacity building and creation of markets to increase the number of investable projects in developing countries, and on investing in thepoorest and most fragile countries. The IFC disbursed $18.7 billion for its own account in fiscal year (FY) 2023 (FY 2022: $13.2 billion).
The IFC is owned by 186 member countries. The US (Aaa negative) is the largest shareholder with an 18.2% voting share and veto power.
Japan (A1 stable) and Germany (Aaa stable) hold 7.6% and 5.1% of the votes, respectively, followed by France (Aa2 stable) and the UK (Aa3stable), with a share of 4.5% each. Together, these five shareholders account for 40% of voting power and 42% of total capital. In April 2018,
the Board of Governors resolved to implement a large capital increase. The capital increase resolution became effective in April 2020 and iscurrently ongoing. In FY 2020, $17 billion of accumulated retained earnings were converted into paid-in capital. A capital increase of up to$5.5 billion was also approved. As of June 2023, the IFC's capital base consists of $22.6 billion in paid-in capital and $11.8 billion in retained
earnings.

This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the issuer/deal page on https://ratings.moodys.com for themost updated credit rating action information and rating history.

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International Finance Corporation – Aaa stable: Update following rating affirmation, outlook unchanged

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Detailed credit considerations
Our determination of a supranational’s rating is based on three rating factors: capital adequacy, liquidity and funding, and strength ofmember support. For MDBs, the first two factors combine to form the assessment of intrinsic financial strength, as shown on the cover
page graphic. Additional factors can affect the intrinsic financial strength, such as risks stemming from the operating environment or
the quality of management. The strength of member support is then incorporated to yield a rating range. For more information, pleasesee our Supranational Rating Methodology.
FACTOR 1: Capital adequacy score: a1
We assess the IFC’s capital adequacy as “a1”, which combines our assessments of “aa3” for capital position, “baa” for developmentrelated asset credit quality and “a1” for asset performance.
Leverage has stabilised after the pandemic and is well below mandated maximum

The IFC has comparatively low leverage, which is mainly a reflection of its higher risk profile compared with that of most other Aaarated MDBs. Its focus on the private sector with a relatively large exposure to equity investments is the key feature that distinguishes
the corporation from most other Aaa-rated MDBs, with the exception of the European Bank for Reconstruction and Development(EBRD, Aaa stable), which has a similar focus on supporting the private sector. Leverage is limited to a maximum of 4x according to the
IFC's policies, and the actual leverage has consistently remained below this limit by a large margin. Defined as outstanding debt andcommitted guarantees as a multiple of subscribed capital and retained earnings, leverage was 1.7x in FY 2023, about even with the 1.6x
a year earlier. The IFC also uses a capital framework based on economic capital considerations; as of the end of June 2023, its available
capital resources of $35 billion were comfortably above the required capital of $21.1 billion.
According to our definition, which includes development-related assets (loans, development-related debt securities, equity investments
and guarantees) and treasury assets rated A3 and lower, relative to usable equity, the IFC's leverage ratio was just about 168% as ofJune 2023, compared with a recent peak of nearly 194% in FY 2020, which reflected the ramp up of lending during the pandemic
as well as the capital increase. The IFC's leverage ratio remains significantly below the Aaa median (see Exhibit 3), and has steadilydecreased over the past several years (with the exception of 2020), as development-related assets (DRAs) have consistently grown
more slowly than the institution's usable equity. In FY 2023, the leverage ratio increased again (from 155% in FY 2022), also reflecting
the ramp of new commitments.
Since its inception, the IFC has had an explicit emphasis on profitability and growing its capital base through retained earnings, afurther distinguishing feature of its credit profile (see Exhibit 4). This contrasts with other MDBs that tend to have not-for-profit
mandates and rely primarily on capital increases from their members to expand their operations. Despite occasional years with losses,
such as in FY 2020 and 2022, we include a one-notch upward adjustment in the subfactor score for capital position to account for the
IFC's strong track record of profitability. The capital increase also included a suspension of grants to the International Development
Association (IDA, Aaa stable), which previously were paid out of the IFC's annual profit.

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Exhibit 3

Exhibit 4

The IFC has lower leverage than that of other Aaa-rated peers

Retained earnings drive capital accumulation

DRAs and treasury assets rated A3 and below/usable equity, in percentage
terms$ billion and percentage of usable equity

Aaa peers

MedianIFC

Paid-in Capital

800

Retained Earnings

40

700

35

600
30

500

$ billion

300
200

0
2017

34%

72%

64%

66%

66%

2020

2021

2022

2023

28%
20
15
89%

100

89%

89%

90%

90%

91%

10

2018

2019

2020

2021

2022

2023

Asian Infrastructure Investment Bank (AIIB, Aaa stable) excluded because of its short
operational history.
Source: Moody's Investors Service

34%

36%

25

400

5
0

11%

11%

11%

10%

10%

10%

2014

2015

2016

2017

2018

2019

In 2020, the IFC converted $17 billion of retained earnings into paid-in capital.
Sources: IFC and Moody's Investors Service

Development-related assets are highly diversified, mitigating weak borrower credit quality

The relatively low development asset credit quality is a direct consequence of the IFC's focus on lending to private-sector borrowers. In
addition, the IFC has sizeable equity holdings, accounting for 20.9% of total development assets as of June 2023, which we consider
to be a generally higher-risk exposure than loans. However, the IFC typically limits its equity participation to no more than 20% of theinvestee company’s common shares and generally ensures that it is not the single-largest investor. Additionally, all equity exposure
is fully covered by capital. At the same time, the IFC's portfolio is highly diversified, which reflects its large size and global reach, andits portfolio concentration metrics are better than those of most of its peers. For example, as of FY 2023, the sum of the IFC's tenlargest exposures accounted for only 9.6% of the total disbursed portfolio, and the single-largest exposure was only around 1.3% of its
portfolio.
Sector concentration is more pronounced because of the IFC's high exposure to the financial sector, including both banking andinsurance, which accounts for 44% of total disbursements. Other large sector exposures include collective investment vehicles (9%)
and electric power (8%). The large exposure to the financial sector reflects the fact that the IFC, like other MDBs, increasingly uses
local financial institutions to channel its funding to corporate borrowers in the recipient countries. Financing for climate adaptation andmitigation is becoming an increasing share of the IFC's portfolio. As part of the WBG's Climate Change Action Plan 2021 - 2025, theIFC committed to at least 35% direct climate-related financing of total commitments on average over the five-year period. The IFC has
also committed to aligning its financial flows with the objectives of the Paris Agreement. Starting in FY 2024, 85% of Board-approved
real sector operations will be aligned with the Paris Agreement’s goals, and full alignment is expected two years later.
Asset performance continues to improve despite shocks and current macro environment

According to our definition of nonperforming assets (NPAs), which includes loans overdue by 90 days, called guarantees andimpairments or losses on equity investments, the IFC's asset performance improved in FY 2023, with the NPA ratio declining slightly tojust 0.8% of DRAs (from 0.9% in the previous year). While the operating environment in many of IFC's borrowing countries will likely
remain challenging, the overall credit risk in the portfolio is mitigated to an important extent by a very granular and widely diversified
development asset portfolio, reflecting the IFC’s global reach. Also, the IFC’s very strong risk management limits the risk associatedwith its business profile, and the corporation’s large capital buffer allows it time to work out stressed exposures. Unlike MDBs that lend
predominantly to sovereigns and never write off loans, the IFC does so regularly.

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FACTOR 2: Liquidity and funding score: aaa
We assess the IFC’s liquidity and funding score as “aaa”. This incorporates a “aa2” score for the size of liquid assets compared withcash outflows, while the IFC's long-established position in the global capital markets is reflected in the strongest score of “aaa” forquality and diversity of funding.
Sizeable liquidity buffers help to absorb shocks

Our preferred metric for the availability of liquid resources — cash and liquid assets as a percentage of outflow over the next 18 months— was 147.5% in the last fiscal year, among the stronger metrics of Aaa-rated peers, and slightly higher than a year earlier (143%).
We only consider highly liquid assets such as cash, short-term bank deposits and securities rated A2 or higher, as only those would
be available in a stress scenario at a short notice and with minimal loss. Returns on the treasury portfolio were strained by rising USinterest rates — a key driver for the overall loss in the last fiscal year. Although assets are marked to market, they are typically held tomaturity. Liquid assets amounted to $48.2 billion in June 2023 and assets are generally invested in very high-quality assets with a shortmaturity.
In addition, the IFC's liquidity policy is more conservative than that of other MDBs, with its policy requiring a minimum level ofliquidity that would cover at least 45% of the next three years’ net cash requirements. Most other MDBs define their minimum
liquidity requirements as 100% of cash requirements over the next 12 months. In practice, the IFC's liquidity buffer has regularly beensignificantly above the minimum; for instance, at the end of FY 2023, it was 104% (FY 2022: 111%). The institution performs regularstress tests of its liquidity needs by heavily haircutting its liquid assets and comparing the stressed value to expected and unforeseen
cash requirements over a horizon of up to 12 months.
Exhibit 5

Exhibit 6

The IFC holds more liquid assets than its Aaa-rated peers

The IFC's borrowings are diversified by currency1

Liquid assets as a percentage of total assets
60

Aaa peers

MedianCurrency mix of medium- and long-term borrowings, FY 2023
NOK
2%

IFC

CNY
2%

Rest
7%

CAD
3%

50

SEK
4%

40
30

USD
38%

NZD
4%

20

HKD
5%

10
0
2017

GBP
8%
2018

2019

2020

2021

2022

AIIB excluded because of its short operational history.
Source: Moody's Investors Service

2023

AUD
27%

Sources: IFC and Moody's Investors Service

Deep and diverse funding base supports credit profile

The IFC’s market access is very robust and highly diversified, resulting in a “aaa” score for the quality and depth of market access. The
corporation is a pioneer when it comes to diversifying its funding and opening new sources of funding. New medium- and long-termborrowings were $13.7 billion in the last fiscal year, $4.6 billion higher than in FY22. In addition, the IFC has a short-term funding
programme of discount notes in US dollar and Chinese renminbi, under which it issued the equivalent of $11.4 billion in FY2023($7.5 billion in FY2022), and $3 billion were outstanding as of the end of June 2023. It uses the programme for liquidity management
purposes, with maturities ranging from overnight to one year. The IFC also actively uses buybacks and early redemptions of its bonds toprovide liquidity to the market.
Its extensive funding tool kit has allowed the IFC to cultivate a very large and diversified investor base, including retail investors in the
US and Japan. For asset/liability management, the IFC generally avoids mismatches between lending and its own borrowing, but there
can be special cases where asset/liability mismatches are acceptable for new products, as approved by the IFC's board. The US dollar
remained the IFC's dominant funding currency, unchanged from previous years.

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Qualitative adjustments to intrinsic financial strength
Operating environment

We do not apply an adjustment for operating environment (which could only be downward), given the IFC's very diversified portfolio.
Quality of management

We assign a one-notch upward adjustment to the IFC's intrinsic financial strength for the quality of management, in particular the
corporation's very prudent risk management. This is consistent with our assessment for other large, long-established MDBs, including
the other entities in the WBG. The IFC is among the MDBs that set the standards for the industry and have best-in-class practices to
identify and manage key risks. The risk management framework clearly identifies responsibilities, and the IFC has very high-quality
and robust information systems and practices. In addition, stress testing is sophisticated and frequent, providing management withadequate tools to inform capital management and decision-making. Policies and stress tests are regularly reviewed and updated.
Liquidity policies and capital management are prudent and managed such that the corporation preserves at all times some distance
between its actual operational targets and minimum policy requirements. These policies have allowed the institution to navigate
episodes of stress in countries of operation and also to respond swiftly to shocks, as seen during the pandemic and more recently in the
Russia-Ukraine (Ca stable) war.
FACTOR 3: Strength of member support score: HighThe IFC's “High” score for strength of member support deviates from the adjusted score of “Low” to reflect our view that shareholders
have a stronger ability and willingness to support the institution than our key metrics suggest. We place particular emphasis on the
IFC's global reach and its expertise in private-sector lending and crowding in private investors, which is highly valued by shareholders.
Also, its key shareholders are highly rated, reflecting their very strong ability to provide support.
Ability to support is underpinned by wide shareholder base and high ratings of large members

The key metric used by us to assess the ability of shareholders to provide support to an MDB is the weighted average shareholder
rating. In the case of the IFC, this is scored at “baa3”, in line with peers such as the IBRD and the AIIB. We also take into accountthe fact that the IFC is one of the few global MDBs with a very large and diverse group of shareholders with a strong interest in theinstitution.
The presence of highly rated shareholders that do not borrow from the institution is a further strength. Despite not participating in thecurrent capital increase, the US remains IFC's largest shareholder, with a share of 19.2% of the capital stock, which is higher than its
share in the IBRD. Overall, 52% of subscribed capital is provided by Aaa and Aa-rated governments, while close to 83% of shareholder
support is from investment-grade sovereigns (see Exhibit 7). Equally, developing country shareholders are generally highly invested in
the institution, having benefited from its lending over the past decades.
Exhibit 7

Exhibit 8

Aaa and Aa-rated members continue to dominate the IFC's
shareholder base

The IFC has one of the lowest shareholder concentrations in the
Aaa universe

Percentage of subscribed capital by rating
Aaa

Aaa1-Aa3

A1-A3

Baa1-Baa3

Ba1-Ba3

B1 and lower

0.50

10%

0.45

Herfindahl-Hirschman index

0%

20%
30%
40%
50%
60%

70%
80%
90%
100%
2017

23 January 2024

0.35
0.30
0.25

NIB

0.20

ESM
EIB

0.15
0.10
0.05
0

2018

2019

2020

2021

2022

2023

IADB
AIIB
IsDB
ADB
EBRD
AfDB

CEB

0.00

Sources: IFC and Moody's Investors Service

6

EIF

0.40

50

100

IBRD
IFC
150

200

Number of members

Data for 2022. Data for IBRD and IFC is for 2023.
Source: Moody's Investors Service

International Finance Corporation – Aaa stable: Update following rating affirmation, outlook unchanged

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MOODY'S INVESTORS SERVICE

Lack of callable capital is offset by low leverage and large paid-in capital buffer ...

Unlike most of its MDB peers, the IFC does not benefit from explicit contractual callable capital support from its shareholders. Instead,
it relies on its accumulated earnings for most of its capital. As a result, the score for contractual willingness to support is “ca”. However,the IFC has comparatively low levels of leverage, implying a high paid-in capital buffer compared with the size of its operations.
Moreover, the IFC has never faced financial distress that would call for a capital infusion and has high-quality risk management
practices in place that should allow for the early detection of potential borrower financial stress.
… and other indications of strong willingness to support

Besides callable capital, we also take into account other indications of shareholders' willingness to provide support to an MDB in case ofneed. In the case of the IFC, we consider such non-contractual willingness to support to be “Very High”.
The current capital increase is evidence of the importance that shareholders ascribe to the institution, which has a solid track recordof six decades of significant developmental impact while achieving solid financial results. The IFC's expertise in private-sector lending
and crowding in private capital is highly valued by shareholders, and distinguishes the corporation from many of its peers. The ability
to attract additional private-sector investors will likely become even more relevant in the future in view of the very high debt levels of
many shareholder governments and the increasing focus on attracting private capital for climate financing needs.
In our view, shareholders are highly invested in the IFC and its role. This applies not only to key shareholders but also to those whose
private sectors benefited or still benefit from the IFC's lending. Many large emerging markets have benefited significantly from the
IFC's and WBG's projects in their countries, resulting in firsthand knowledge of its intrinsic value. Therefore, we consider it highly likelythat shareholders would provide additional capital if this were ever necessary. The diversity of shareholders is a benefit in this regard,
limiting correlation risks between shareholders, and also between shareholders and assets.

ESG considerations
International Finance Corporation's ESG credit impact score is CIS-1
Exhibit 9

ESG credit impact score

Source: Moody's Investors Service

The IFC's credit impact score at CIS-1 reflects an overall positive impact of ESG factors, in particular very strong social and governanceconsiderations. Furthermore, resilience is supported by the particular importance assigned to the entity by large non-borrowing
members, including the US.

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Exhibit 10

ESG issuer profile scores

Source: Moody's Investors Service

Environmental
IFC has low exposure to environmental risks (E-2). The IFC is among the few global MDBs with a very diversified portfolio, mitigating
indirect exposure through operations in countries with heightened environmental risks.
SocialSocial attributes support IFC’s credit profile (S-1) with particular strengths in the area of responsible production as well as benefits
from demographic & societal trends. The IFC supports private enterprises in emerging economies, often acting as anchor investor or
lender and crowding in additional private capital. The IFC extensively uses public consultation processes to ensure buy-in from key
stakeholders, and has outstanding community and stakeholder outreach. The IFC does not face any issues attracting highly skilled
personnel and there are no health & safety considerations that would negatively or positively affect the issuer profile.
Governance
The IFC's positive governance issuer profile score (G-1) reflects its very strong risk management and strong management credibility andtrack record. The IFC is among the group of MDBs that are developing best in class reporting, disclosure standards and a framework forfull alignment with the Paris Agreement.
ESG Issuer Profile Scores and Credit Impact Scores for the rated entity/transaction are available on Moodys.com. In order to view thelatest scores, please click here to go to the landing page for the entity/transaction on MDC and view the ESG Scores section.
All of these considerations are further discussed in the “Detailed credit considerations” section above. Our approach to ESG is
explained in our cross-sector methodology General Principles for Assessing Environmental, Social and Governance Risks. Additional
information about our rating approach is provided in our Supranational Rating Methodology.

Recent developments
Strong financial performance on back of higher interest rates and reversal of valuation losses
The IFC recorded a net profit of $672 million in FY 2023, compared with a net loss of $464 million a year earlier. The key drivers of thestrong improvement in financial performance were the higher interest rate environment and the reversal of the previous year’s markto-market losses. Specifically, interest income from the treasury portfolio recorded a gain of $1.46 billion compared to a loss of $413
million in the previous year, and the income from loans and guarantees was more than $1 billion higher than in the previous year, at$2.3 billion in FY 2023 versus $1.15 billion a year earlier. At the same time, IFC’s cost of borrowing has also increased significantly, toclose to $2.6 billion compared to only $302 million the previous year.
The good financial performance continued into the first quarter of FY 2024. As per its unaudited financial statements for the quarter
ending September 2023, the IFC recorded net income of $414 million compared to a loss of $62 million a year earlier, mainly driven byhigher treasury and equity income.
Asset performance was stronger than expected last year
The IFC’s asset performance has been stronger than expected in FY 2023, against the background of significant stress in many emerging
and frontier markets as interest rates rose materially. Notwithstanding this, IFC reported its lowest ratio of non-performing loans since
FY 2010 at 2.7% of disbursed loans, compared to 3.9% a year earlier and an average NPL ratio of 4.7% in the preceding three years,
using the IFC's strict definition of NPLs as payments overdue by more than 60 days. While the improvement in asset performance was

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partly due to the higher loan volumes – with IFC recording its highest ever loan portfolio of around $42 billion (FY 2022: $34.5 billion)– NPLs also declined in nominal terms.
We expect IFC’s asset performance to remain strong, despite ongoing challenging operating conditions in many of IFC’s borrowing
countries. IFC benefits from a very diversified portfolio, with the ten largest country exposures accounting for slightly over half of IFC’s
portfolio. The largest country exposure remains India (Baa3 stable) at 10.7% of the total disbursed portfolio, followed by Brazil (Ba2stable) at 8.3% and Turkiye (B3 stable) at 7.4%.
Capital increase is progressing, payment timeline for selective part extended to 2025
As of September 2023, 125 shareholders have subscribed to $4.4 billion out of a total target for the capital increase of $5.5 billion;also, $3.1 billion in payment has been received from 104 shareholders. The United States is not contributing to the capital increase (aswas agreed from the start), which will dilute its shareholding to 17-18% from around 21% before the capital increase. It will maintain
important veto rights though.
The capital increase consists of a Selective and a General Capital increase (SCI and GCI) besides a conversion of a part of retained
earnings into paid-in equity, which became effective in 2020. In April 2023, the Board of Governors extended the subscription
deadline for the SCI and GCI to April 2025 and April 2024 respectively, in recognition of the impact of the Covid pandemic on many
shareholders. In addition, the timeline for payment under the SCI was extended to April 2025, to be aligned with the GCI.
In the context of calls by the G-20 group of countries for MDBs to optimise their balance sheet and crowd in more private finance,
the IFC is working to expand its pipeline of projects, including through the deployment of more blended finance and securitisation
platforms.

923 January 2024

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Rating methodology and scorecard factors
Factor / Subfactor

MetricInitial score

Adjusted score

Assigned score

Factor 1: Capital adequacy (50%)

a1a1Capital position (20%)

aa3
Leverage ratio

a1

Trend

0

Impact of profit and loss on leverage+1

Development asset credit quality (10%)

baa

DACQ assessment

baa

Trend

0

Asset performance (20%)

a1Non-performing assets

a1

Trend

0

Excessive development asset growth

0

Factor 2: Liquidity and funding (50%)

aaaLiquid resources (10%)

aaa

aa2
Availability of liquid resources

aa2

Trend in coverage outflow

0

Access to extraordinary liquidity0

Quality of funding (40%)

aaaPreliminary intrinsic financial strengthaa2

Other adjustments+1

Operating environment

0Quality of management+1

Adjusted intrinsic financial strength

aa1

Factor 3: Strength of member support (+3,+2,+1,0)Low

Ability to support (50%)

baa3Weighted average shareholder rating

High

baa3

Willingness to support (50%)
Contractual support (25%)

caStrong enforcement mechanism

0

Payment enhancements0

Non-contractual support (25%)
Scorecard-Indicated Outcome Range
Rating AssignedcaVery High
Aaa-Aa2
Aaa

Note: Our ratings are forward-looking and reflect our expectations for future financial and operating performance. However, historical results are helpful inunderstanding patterns and trends of an issuer’s performance as well as for peer comparisons. Additional considerations that may not be captured when historicalmetrics are used in the scorecard may be reflected in differences between the adjusted and assigned factor scores. Furthermore, in our ratings we often incorporate
directional views of risks and mitigants in a qualitative way. For more information please see our Multilateral Development Banks and Other Supranational Entities
rating methodology.
Source: Moody's Investors Service

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Related websites and information sources» Moody's Supranational web page
» Moody's Sovereign and supranational rating list
» International Finance Corporation web page
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Endnotes
1 USD - United States dollar, AUD - Australian dollar, GBP - British pound sterling, HKD - Hong Kong Dollar, NZD - New Zealand dollar, SEK - Swedishkrona, CAD - Canadian dollar, NOK - Norwegian krone, CNY - Chinese yuan.

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23 January 2024

International Finance Corporation – Aaa stable: Update following rating affirmation, outlook unchanged

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23 January 2024

1393851

International Finance Corporation – Aaa stable: Update following rating affirmation, outlook unchanged

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23 January 2024

International Finance Corporation – Aaa stable: Update following rating affirmation, outlook unchanged