SHANGHAI, August 29. /TASS/. Standard & Poor’s (S&P) has assigned its ‘AA+’ long-term and ‘A-1+’ short-term issuer credit ratings on New Development Bank (NDB). The outlook on the long-term rating is stable.
“The ratings reflect our opinion that NDB will establish itself as a catalyst in reducing the infrastructure deficits faced by its BRICS members,” the agency said in a press release.
S&P assesses the bank’s financial profile as “extremely strong.”
The agency also took into account the reliable support from the shareholders of the NDB.
On August 3, the NDB announced that it had received a long-term issuer default rating at AA + with a stable outlook and short-term issuer default rating at F1 + from Fitch.
“Today marks a momentous step for NDB towards establishing itself as a premier multilateral development finance institution,” said K. V. Kamath, President of NDB, commenting on S&P’s rating announcement.
“Given the scale of our future ambitions, the AA+ ratings from S&P and Fitch, put the Bank in an exceptional position to mobilize financial resources at competitive rates thereby greatly enhancing our lending capacity to our members,” he said.
“This milestone enables the Bank to offer full suite of financial products to its public and private sector clients. The AA+ ratings from the two agencies are recognition of the Bank’s strong financial profile as well as an endorsement of its prudent future growth plans and sound risk management practices,” the President of NDB said as quoted by the press release publsihed on the bank’s website.
NDB also received the highest AAA rating of two Chinese rating agencies – Chengxin International Credit Rating and China Lianhe Credit Rating.
About the New Development Bank
NDB is a multilateral lending institution established by Brazil, Russia, India, China, and South Africa (BRICS) in July 2014. The main task of the bank is to finance infrastructure projects and sustainable development projects in the BRICS countries and in developing countries.
To date, more than 20 projects have been approved in the member countries of the organization, including four in Russia, for a total of $ 5.1 billion. According to the bank’s development strategy, the total volume of approved projects by 2021 may reach $ 44 billion.
Article Sourced via TASS