Sukuk Standard 62 hasn't impacted Islamic lenders yet, says Fitch
A proposed change to the directive governing sukuk has not impacted the ratings of Islamic lenders so far, but a lack of clarity hovers around the standard’s final scope and implementation.
The AAOIFI Sharia Standard 62 has not reduced the ability of Islamic lenders to issue, invest in and arrange sukuk, but these remain risks to watch, Fitch Ratings has said. It does not expect the adoption of the standard to have an immediate impact on existing bank sukuk ratings as material changes to the documentation would require sukuk holder approval.
“Many Islamic banks are active sukuk issuers. If the adoption of Standard No. 62 disrupted sukuk issuance, it may affect some Islamic banks’ overall funding and liquidity profiles,” the ratings agency said in a note on Monday.
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