Fitch rates Asian Development Bank bond AAA

Fitch Ratings said it assigned the Asian Development Bank's RMB 1 billion fixed-rate bond due October 2020 a long-term rating of AAA.

The rating is in line with the bank's long-term issuer default rating of AAA, which reflects the high credit standing of its non-borrowing sovereign shareholders, its comfortable capitalization and conservative financial policies, the agency said.

The bank's capital base is strong and there was a strong commitment shown by shareholders in approving a capital increase in 2009, Fitch said.

The credit risk profile of the bank is characterized by high concentrations and a focus on low-rated counterparties, Fitch said, but the credit quality of some of the bank's largest borrowers improved in 2008 and 2009.

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