Within the context of the new proposed law for the bank which is currently under review & discussion at the Parliament, CVDB shall play a more active role as a national local development bank to the local entities, mainly the municipalities. Consequently, and in its ongoing efforts to support its beneficiaries of Jordanian municipalities to enable them to have more access to financing that is directly linked to the financial condition and performance of the municipalities, CVDB recently introduced and enforced a quantitative credit scoring and rating system which classified the Jordanian municipalities into three categories: Gold, silver, and bronze.

This classification and rating are direct results of the Bank’s assessment of the creditworthiness and borrowing capabilities of the beneficiary municipalities. Moreover, the Bank developed a Credit Risk Matrix that linked the credit rating of the municipality with loan pricing (either normal or interest based). As such, the bank employs a risk-based lending approach in its credit extension to the beneficiary of municipalities.

This approach makes the credit extension process to the municipalities more systematic, logical, and built on quantitative measures and KPI, and reduces the subjective judgment in the whole process. Moreover, it invited CVDB to think of going a step further by performing a credit rating for the bank itself from internationally recognized rating agencies to stand in a more solid position to expand its role, and to act as a national local development bank, serving local entities and municipalities.

This move is expected to be reflected into more solid and creditworthy financial condition and performance of the bank, as CVDB is expected to have wider access to financing sources and instruments, in compliance with the local and international requirements of the credit rating agencies.

 The expert mandates are to provide TAs to CVDB and should has strong background and experience in credit rating of public and private institutions to facilitate the process for CVDB to qualify for fair and suitable credit rating and international recognition.

Outputs / deliverables:

• Detailed file containing the guiding steps & procedural requirements for CVDB to qualify for fair international credit rating.
• Recommendations for CVDB on the most suitable financing sources, markets, and innovative financing & investment instruments, in compliance with the effective Bank Law and By-laws.
• Link CVDB with the most suitable credit rating agency for further communication and
• Presentation of the report to the Bank’s top Management and the concerned entities.