ACRA affirms the EDB’s credit rating at A- on the international scale, and AAA(RU) on the national scale

20 March 2020

Moscow, 20 March 2020. ACRA affirmed the Eurasian Development Bank’s (EDB) credit rating at A-/stable on the international scale, and AAA(RU)/stable on the national scale.

The ratings are based on both the high level of support from the Bank’s shareholders and high standalone creditworthiness assessment (A-) ensured by the Bank’s rather high capital adequacy ratio, satisfactory risk profile, as well as adequate funding and liquidity.

ACRA notes that the EDB’s strategy for 2018–2022 envisages a proactive expansion of investment, in particular in the energy sector. The EDB also intends to develop settlement transactions between the EAEU member countries and issue customs and public procurement guarantees, which is expected to strengthen its position of the leading international development institution in Eurasia.

The Bank’s significant capital is regarded as a comfortable buffer against potential losses. At the end of December 2019, ACRA estimated its capital adequacy ratio at 35.8%. This was ensured, among other things, by adequate operational efficiency and an estimated return on equity (ROE) of 3.5%.

The EDB’s risk profile is assessed as satisfactory and considered to be relatively diversified by country, with Russia accounting for 38.2%, other countries, including non-EAEU ones, 27%, and Kazakhstan and minority shareholders the remaining percentage of financial assets. The loan portfolio is almost completely secured by guarantees and pledges, with public and corporate guarantees making up the majority of collateral (63%).

The EDB is steadily maintaining a significant amount of highly liquid assets on its balance sheet, which exceed short-term liabilities by 5.7 times.

Support from the member countries is rated at A-.  

The EDB is assessed yearly by the world's leading rating agencies. Last year, Standard & Poor’s raised its long-term credit rating to BBB – one notch higher than the sovereign ratings of Russia and Kazakhstan. Moody’s Investors Service affirmed the Bank’s long-term credit rating at Baa1, which is two notches higher than the sovereign ratings of Russia and Kazakhstan. Fitch Ratings rated the EDB at BBB+, one notch higher than the sovereigns rating of Russia and Kazakhstan, and assigned it the highest rating of AAA(kaz) on Kazakhstan’s national scale.

Additional Information:

The Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. The EDB's charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.

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)

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