S&P affirms the EDB’s 'BBB/A-2' ratings and revises outlook
Moscow, 31 March 2020. S&P Global Ratings affirmed the Eurasian Development Bank’s (EDB) long- and short-term credit ratings at ‘BBB/A-2’ as well as its 'kZAAA’ national scale rating and revised the outlook from Stable to Negative.
The agency notes that the revision resulted from continued rapid growth of the Bank’s portfolio and global economic volatility relating to the spread of COVID-19 and a sharp decline in oil prices.
“After increasing significantly by 47% in 2018, EDB’s current investment portfolio expanded by another 27% to $4.3 billion as of year-end 2019 ($3.4 billion as of year-end 2018). This was mainly a result of new, larger ticket infrastructure projects. Although we expected a faster pace of growth, the significant increase was clearly beyond our forecasts,” notes S&P Global Ratings.
“It’s premature to talk about the negative impact of the developing economic crisis on the Bank’s portfolio. The EDB is stress testing its portfolio and monitors clients’ performance on a regular basis. As for the loan portfolio growth, the Bank is a multilateral financial institution established to promote the development of its member economies and, therefore, its financing priorities include transport infrastructure, energy, industry, and other strategically important sectors. In addition, S&P disregards in its calculations the Bank’s callable capital of US $5.5 billion formed by the shareholders to secure its current and future obligations to creditors and investors,” comments Dmitry Ladikov-Roev, Member of the Management Board and Managing Director for Assets and Liabilities at the EDB.
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)