The New Development Bank was assigned ‘AAA’ foreign currency long-term issuer rating with a stable outlook by Japan Credit Rating Agency, Ltd (JCR).
In its press release, JCR stated that NDB’s ‘AAA’ rating is based on its appraisal of the strong support for the Bank’s operations by the member countries, the NDB’s solid capital base and conservative risk management framework to ensure financial soundness, and the preferred creditor status enjoyed by the Bank.
“BRICS is facing enormous financial requirements in the infrastructure development and sustainable growth, and governments have clarified their policy of utilizing the NDB as the core institution for mobilizing resources in these fields. Capital payments from the five founding member countries have also made steady progress in creating a robust financial structure, and the NDB is expected to maintain a sound financial structure through conservative risk management even when its loans expand further in volume,” explained JCR in the press release.
“JCR believes that the NDB will adequately fulfill its role as an MDB set up for emerging countries by emerging countries,” stated the rating agency.
“The AAA international rating is a significant milestone for the Bank that is fully owned and led by developing countries. The AAA rating from JCR combined with the AA+ from S&P and Fitch respectively reflects the strong credit quality of the Bank. Given its international credit ratings, NDB is well positioned to raise capital at competitive rates through the bond markets and ensure competitive loan pricing to our clients,” said Mr. Leslie Maasdorp, NDB VP & CFO.
The document entitled “JCR Assigned AAA Rating to New Development Bank with Stable Outlook”, dated August 20, 2019 is entirely the copyright of, and is reproduced with the permission of JCR.