Fitch affirms the Eurasian Development Bank’s credit ratings at ‘BBB+’, Outlook Stable
Moscow, 25 November 2020. Fitch Ratings has affirmed the Eurasian Development Bank’s (EDB) long-term rating at ‘BBB+’. The outlook is Stable.
“EDB’s Long-Term IDR of ‘BBB+’ remains anchored on the intrinsic features of the Bank. Its intrinsic credit profile is driven by our solvency profile assessment of the Bank, which is unchanged at ‘a’, the lower of its liquidity and solvency assessments. The Bank’s liquidity assessment is also unchanged at ‘aa-’,” the agency’s release states.
The analysts note the EDB’s ‘excellent’ capitalisation as a key rating strength.
“As of FYE19, the equity/assets ratio was 36% and we expect this figure to decline slightly over the medium term to a range of 30%-35%. Our assessment is also supported by the Bank’s usable capital / risk-weighted assets (FRA) ratio – which is expected to continue to exceed the 35% ‘excellent’ threshold by the end of of the forecast period (FYE19: 47%),” Fitch Ratings states.
According to agency experts, liquidity continues to be a rating strength for EDB, with the Bank’s ‘aa-’ liquidity profile reflecting its ‘excellent’ liquidity buffer, ‘moderate’ asset quality and ‘moderate’ access to capital markets.
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)