International ratings agency S&P Global Ratings has upgraded the long-term issuer credit rating for the OPEC Fund for International Development (OPEC Fund), citing that the fund has “extremely strong” financial risk profile.

The agency raised the rating on the fund to “AA+” from “AA”, as well as affirmed its “A-1+” short-term issuer rating and assigned a stable outlook, it said in a statement on Wednesday.

The rating was issued after the OPEC Fund signed off on more than $600 million in new development financing, which will support projects in the transportation, health, education and energy sectors, and will promote climate action and food security, as well as boost international trade.

S&P said the OPEC Fund has a “very strong” liquidity position. It said the fund has also now established capital market access via benchmark and commercial issuances, and significant capacity to support more lending activity.

More than 125 countries have so far benefited from the OPEC Fund, which has disbursed more than $24 billion since its inception in 1976.

The new $600 million in financing will go to various projects in several countries, including China, Comoros, Liberia, Madagascar, Malawi and Paraguay among many others.

(Writing by Cleofe Maceda; editing by Seban Scaria) 
seban.scaria@lseg.com