ACRA affirms A- to the EDB on the international scale and AAA(RU) on the national scale
Moscow, 3 March 2021. ACRA has affirmed the Eurasian Development Bank’s (EDB) credit rating at A-, outlook Stable, on the international scale, AAA(RU), outlook Stable, on the national scale, and AAA(RU) for bond issues.
The credit rating assigned to the EDB is driven by both moderately high support from shareholding sovereigns and the Bank’s own standalone creditworthiness assessment, which stems from strong capital adequacy, satisfactory risk profile, and adequate liquidity and funding positions.
ACRA notes that the EDB has a significant amount of capital, which provides a comfortable absorption buffer against potential losses. This is supported by adequate operating efficiency metrics including return on equity ratio (ROE) of 2.8%. Furthermore, the EDB has a substantial supply of callable capital (US $5.5 billion), as well as paid-in capital (US $1.5 billion).
The EDB is characterised by its strong liquidity position as it maintains a substantial share of highly liquid assets on its balance sheet, standing at 3 times the amount of short-term liabilities. This, along with diversified funding sources, provides a comfortable cushion of liquidity in the short and medium terms.
“The high rankings assigned to the EDB by the Russian rating agency does not only confirm the Bank’s performance and reliability. This assessment makes it possible for us to be active and work in the interests of our partners in the Russian Federation and in the interests of our member states, which are developing joint projects. That said, the Bank, which maintains a leading position in the region among multilateral development institutions, will continue to work systematically to improve its ratings from all the leading rating agencies,” said Nikolai Podguzov, Chairman of the EDB Management Board.
Additional Information:
The Eurasian Development Bank (EDB) is an international financial institution promoting integration and development in its member countries – Armenia, Belarus, Kazakhstan, the Kyrgyz Republic, Russia, and Tajikistan. The EDB's charter capital totals US $7 billion. The Bank was established in January 2006 by Russia and Kazakhstan and is headquartered in Almaty. Transport infrastructure, energy, chemical, mining, and mechanical engineering projects with a high integration effect account for the main part of the EDB’s portfolio.
The EDB Media Centre:
Alexander Savelyev +7 (985) 765 23 59 (Moscow)
Azima Sapargaliyeva +7 (777) 750 00 08 (Almaty)
Sergey Gorbachev +7 (916) 727 22 00 (Moscow)