Standard & Poor’s confirms the Eurasian Development Bank’s ratings
On 4 October 2007, Standard & Poor’s confirmed credit ratings for the Eurasian Development Bank (EBD). The Bank’s long-term rating was confirmed at “BBB+,” while the short-term rating was confirmed at “A-2." Ratings were not affected by the inclusion of Kazakhstan - a founder of the Bank - on the CreditWatch list. According to the rating agency’s statement, a potential decrease in Kazakhstan's rating will not have an impact on the EDB's solvency.
The EDB's rating level is still supported exclusively by the Bank's high capitalization and its support from the governments of its founding member countries, Russia and Kazakhstan. Furthermore, S&P reported that EDB’s rating may be raised in the future if the Bank is successful in carrying out its mission.
According to Dmitri Krasilnikov, a member of the EDB’s management board and head of the Department for Corporate Finance and Financial Institutes, “S&P’s confirmation of our ratings and a “stable” forecast emphasize the EDB’s role as a supranational regional financial institute focused on providing long-term financing. The EDB is dedicated to more positive movement of its credit ratings, based on growth and improvements in the quality of the credit portfolio, which will help the Bank carry out its mission successfully, even under conditions of insufficient market liquidity."
The Eurasian Development Bank is an international financial organization instituted by Russia and Kazakhstan in January 2006 in order to stimulate development of market economies in its member countries, as well as their sustainable economic growth and expansion of mutual trade and economic ties. The EDB is dedicated to becoming one of the key components of the financial infrastructure in Eurasia, serving as an effective investment mechanism for the development of cooperation among member countries, facilitating deeper integration processes and aligning the levels of socio-economic development in the countries in the post-Soviet space. The Bank was created per an initiative of the Presidents of the Russian Federation and the Republic of Kazakhstan. The EDB’s charter capital currently amounts to USD 1.5 billion.