IFC loan impactIFC’s ability to act as an effective mitigant of country risk has been recognized by the major rating agencies (Duff & Phelps, Moody’s, Standard & Poor’s), and IFC B loans have been rated above the foreign currency rating of the country. In each case, the transactions have been assigned a foreign currency rating equal to the borrower’s local currency rating. This treatment reflects the rating agency’s recognition of IFC’s preferred creditor status and the expectation that foreign exchange will be made available to the borrower to service its obligation. Accordingly, the constraint of the sovereign foreign currency rating is removed.
IFC has had many of its transactions for corporate borrowers in Latin America, Europe, and Asia rated to pierce the sovereign ceiling and achieve investment grade status.
https://www.ifc.org/ifcext/treasury.nsf/Content/TreatmentofParticipants