Fitch rates Asian Development Bank notes AAA

Fitch Ratings said it assigned the Asian Development Bank's A$5 billion medium-term notes an AAA long-term rating with a stable outlook. The bank has an AAA long-term issuer default rating, which Fitch said reflects the strong support it receives from high-quality non-borrowing shareholders, comfortable capitalization and excellent asset quality.

The bank benefits from strong support from its member countries, which have committed to inject further capital in case of financial distress. At the end of 2004, this callable capital represented some 207% of total loans and 63.4% of this amount was held by non-borrowing countries or countries which carry issuer default ratings of AA- or above, the agency said.

The bank's capitalization is very strong, with a ratio of usable capital to required capital of 11.71x at the end of 2004, and Fitch said it abides by conservative policies regarding capital adequacy, interest and exchange rate risks, liquidity and gearing.

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