New Development Bank receives AA+ credit rating from Fitch
Fitch Ratings (“Fitch”) announced it has assigned New Development Bank (NDB) a long-term issuer default rating (IDR) of ‘AA+’ with a stable outlook and a short-term IDR of ‘F1+’.
In its press release Fitch stated, NDB’s AA+ credit rating is driven by the intrinsic features of the Bank. Fitch considers NDB’s capitalization as excellent and risk profile as low. Fitch assesses NDB’s risk management policies as strong mainly driven by the self-imposed prudential rules that the Bank abides by, primarily on the capitalization and liquidity fronts.
“We are happy to receive the AA+ rating from Fitch”, said K. V. Kamath, President of NDB, commenting on Fitch’s rating announcement. “The AA+ rating is an exceptional achievement for a multilateral development bank fully owned and led by developing countries. This high credit rating is a testament to both the well-struck balance between growth and prudence demonstrated by the Bank in its own future plans as well as the growing influence of the BRICS countries in the global economy. It enables the Bank to access capital from global financial markets at attractive rates to support its members’ development agendas in the areas of infrastructure and sustainable development, thereby helping the Bank fulfil its developmental mandate. Fitch has highlighted that “the relatively limited number of countries NDB expects to be operating in results in a ‘high’ level of concentration risk”. As the Bank evolves, we believe that diversification of business and expansion of the Bank’s membership in the future will naturally lead to a decline in concentration risk. In addition, the Bank will also use all available innovative financial tools to address this issue.”
Press-release at the NDB official web-site