Fitch rates Eurasian Development Bank BBB+

Fitch Ratings said it assigned Eurasian Development Bank a long-term issuer default rating of BBB+ with a stable outlook.

“Fitch considers EDB’s ‘excellent’ capitalization as a key rating strength, primarily driven by our view that EDB’s equity / assets ratio will continue to far exceed the 25% ‘excellent’ threshold over a three-year forecast period ending 2021. As of FYE18, the equity/assets ratio was 47% and, while we expect this figure to decline over the medium term to around 35%-40%, significant headroom remains above the 25% threshold,” said Fitch in a press release.

The agency noted that as a multilateral development bank making money isn’t a key priority for the bank, but to build reserves to fulfill its development mandate. At FY 2018, the bank’s internal capital generation was 3.9%, which Fitch said compares favorably with its peers.

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