Components of Rating Sukuk in Iran's Capital Market

Babajani, Jafar; Sahebgharani, Amir Abbas

doi:10.30497/ifr.2018.2241

Components of Rating Sukuk in Iran's Capital Market

Document Type : Paper

Authors

Jafar Babajani ¹

Amir Abbas Sahebgharani ²

¹ Accountant Professor, Allameh Tabataba'i University, Tehran, Iran,

² PH. D student in accountancy of Allame Tabataba'i University

10.30497/ifr.2018.2241

Abstract

The establishment of rating agencies as important financial institutions in the capital market has been emphasized by SEO in recent years and its related instructions were officially published in 2016. Meanwhile, with the growth of financing instruments in the capital market and the priority given to sukuk, the need for the former's rating is necessary for determining its value and accelerating the financing process of economic organizations by using it. Presently, the lack of this rating has been compensated by including a guarantor in the structure, but this has for some reasons created obstacles in the way of issuing it and challenged the financing process with this kind of instrument. On the other hand, the capital market supervising agent's requirements for rating sukuk have been set out before its being issued and the sukuk rating has replaced guaranty in sukuk structure.
This article demonstrates how the dimensions and components of sukuk rating in Iran capital market were assessed by experts using Delphi technique with the aim of achieving consensus on it. The theoretical foundations of the presented model were derived from three sources, namely sukuk issue instructions, rating institutes' methods at both national and international levels, and Islamic financial institutes' instructions in regard to rating sukuk. These factors altogether, which have been approved by experts, can illustrate the general framework of rating sukuk in the country's capital market.

Keywords

Sukuk

Sukuk Rating

Sukuk Rating Components

Delphi Method

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