Fitch gives Brics’ New Development Bank its second-highest rating
The credit rating agency says NDB’s capitalisation is excellent, and its risk profile low — but it does suffer from ‘risk concentration’ due to its limited geographic spread
International credit ratings agency Fitch Ratings has awarded a top investment-grade rating to the Brics-owned New Development Bank, citing its low risk profile and robust capitalisation. A long-term issuer default rating of AA+ with a stable outlook, with a short-term rating also at AA+, is the second-highest ranking on the Fitch scale. Fitch, one of the three largest global credit ratings agencies, said on Friday it considered the bank’s capitalisation as "excellent" and its risk profile as "low". "Fitch assesses NDB’s risk-management policies as strong, mainly driven by self-imposed prudential rules that the bank abides by, primarily on the capitalisation and liquidity fronts," Fitch said. But it also cautioned against a "concentration risk", saying the "relatively limited number of countries NDB expects to be operating in results in a ‘high’ level of concentration risk". Fitch expected the risk to subside as the bank diversifies and expands its membership in future. The multilat...
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