Standard & Poor’s Confirmed EDB Credit Ratings
Almaty, 24 August 2010. Standard & Poor’s confirmed its long-term and short-term ratings assigned to the EDB’s foreign currency liabilities at «BBB» and
Rating forecasts remained «stable». The agency also confirmed the EDB’s ratings at the Kazakh and Russian scales: «kzAA+» and «ruAAA», respectively.
According the official press-release of Standard & Poor’s, these ratings were confirmed due to strong support from the Bank’s sovereign shareholders which was in turn evidenced by its high capitalisation, and the Bank’s clearly formulated role as a regional international development institution.
The agency also noted an increase in an average duration of the EDB’s liabilities from one year to approximately five years as a positive development that had been achieved by shifting emphasis from borrowings under bilateral and multilateral agreements to market debt issues.
Standard & Poor’s also notes that the EDB demonstrates good capitalisation which reduces risks associated with difficult operating conditions. Russia and Kazakhstan hold nearly two-thirds and one-third of the Bank’s equity, respectively, which in late June 2010 accounted for 65% of the Bank’s total assets. The agency also notes that the EDB’s important role in solving political issues is best illustrated by the fact that Armenia, Tajikistan and Belarus joined the Bank.
Summary
The Eurasian Development Bank is an international financial organisation founded by Russia and Kazakhstan in January 2006 for the purpose of assisting market economy development in its member states, their sustainable economic growth and mutual trade and economic ties. The EDB’s charter capital exceeds $1.5 billion. The member states are Russia, Kazakhstan, Armenia and Tajikistan.
In June 2009 the member states of the ACF appointed the EDB manager of the ACF and entered into an agreement with the Bank to that effect.
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