ACRA affirms the EDB’s ratings at A- and AAA(RU) with a stable outlook

08 September 2020

Moscow, 8 September 2020. ACRA has affirmed the Eurasian Development Bank’s (EDB) credit ratings at A-/stable on the international scale, and AAA(RU)/stable on the national scale.

“The credit rating assigned to the EDB is driven by both moderately high support from shareholding sovereigns and the EDB’s own standalone creditworthiness assessment (SCA) of a-, which stems from strong capital adequacy, satisfactory risk profile, and adequate liquidity and funding positions,” ACRA’s press release says.

The EDB has a significant amount of capital, which provides a comfortable absorption buffer against potential losses. As of end-June 2020, the capital adequacy ratio stood at 36.5% according to ACRA. This is supported by adequate operating efficiency and a return on equity ratio (ROE) of 3.6%, as calculated by ACRA.

ACRA also notes that the EDB’s risk profile exhibits high country diversification and the prevalence of the Russian rouble and Kazakhstani tenge in the loan portfolio, which is in line with the Bank’s operational objectives.

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 2.2 times the amount of short-term liabilities.

It is also noted that the EDB intends to develop settlement transactions (letters of credit and clearing services) among EAEU member states, as well as issue customs and public procurement guarantees, which is expected to strengthen the Bank’s position as a leading multilateral development institution in Eurasia.

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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