New Development Bank’s ‘AA+’ Long-Term Issuer Default Rating affirmed by Fitch Ratings

On July 29, 2020, New Development Bank’s Long-Term Issuer Default Rating (IDR) was affirmed by Fitch Ratings at ‘AA+’ with a Stable Outlook. Fitch Ratings also affirmed the Bank’s Short-Term Issuer Default Rating at ‘F1+’. The full press release announcing Fitch’s decision is available on the website of the rating agency.

“NDB’s ‘AA+’ rating continues to be driven by its existing and expected intrinsic features, based on Fitch’s long-term projections,” stated Fitch Ratings. “Fitch continues to consider NDB’s capitalisation as ‘excellent’.”

Fitch Ratings assessed the Bank’s risk management policies as ‘strong’, mainly reflecting its self-imposed rules, primarily on capitalisation and liquidity metrics. “Most of NDB’s policies are prudent and in line with ‘AAA’ rated peers,” stated the rating agency.

Fitch Ratings also noted that NDB will continue to support its member countries by providing crisis-related assistance, including for financing health and social safety expenditures caused by COVID-19, as well as supporting economic recovery.

“The affirmation of NDB’s ‘AA+’ long-term issuer default rating by Fitch is a testament to the strong shareholder support, high quality loan portfolio and sound risk management framework embedded by the Bank as it establishes itself as a global high quality issuer,” said Mr. Leslie Maasdorp, NDB Vice President and CFO.

The document entitled “Fitch Affirms New Development Bank at ‘AA+’; Outlook Stable”, dated July 29, 2020, is entirely the copyright of, and is reproduced with the permission of Fitch Ratings.

Background Information

NDB was established by Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development. The NDB received ‘AA+’ long-term issuer credit ratings from S&P and Fitch and ‘AAA’ foreign currency long-term issuer ratings from Japan Credit Rating Agency (JCR) and Analytical Credit Rating Agency (ACRA).