International Islamic Rating Agency
The Islamic International Rating Agency (IIRA) is the sole rating agency established to provide capital markets and the banking sector in predominantly Islamic countries with a rating spectrum that encompasses the full array of capital instruments and specialty Islamic financial products.
IIRA was established to provide a wide range of services. The main purpose is to play a pro-active role in the development of financial markets by providing an assessment of the risk profile of entities and instruments which can be used as a basis for investment decisions.
IIRA is a unique rating agency in that it provides a Shari’a quality rating, credit rating, corporate governance rating and sovereign rating services.
IIRA’s credit rating services will cover both Islamic banks and institutions and their products, such as sukuks, as well as conventional banks and financial institutions and their products such as bonds and commercial paper.
IIRA’s corporate governance rating assesses the governance system of banks, corporates and financial institutions against international best practices and local regulatory requirements, thus providing guidance for improving governance systems.
Sovereign rating assesses the creditworthiness of the government of a country, that is, its ability and willingness to fully service its financial obligations on time.
Shariah Quality Rating
The Shari’a Rating is aimed at providing information and independent assessment of Shari’a compliance by IFIs or institutions that offer Islamic banking or financial services, as well as Islamic financial products. Major elements of this evaluation will cover an institution’s internal mechanisms for Shari’a compliance, the authority, strength and resources of the entity’s Shari’a committee, and the opinions expressed by Shari’a committee members and their differences in opinion, if any.
- Shari’a Harmonization, Regulation and Supervision by Jamal Abbas Zaidi