August, 29 2018, S&P Global Ratings (“S&P”) assigned its ‘AA+’ long-term and ‘A-1+’ short-term issuer credit ratings with a stable outlook on New Development Bank (“NDB”).
In its press release S&P stated, “The ratings reflect our opinion that NDB will establish itself as a catalyst in reducing the infrastructure deficits faced by its BRICS members.” S&P assessed NDB’s business profile as strong and financial profile as extremely strong reflecting its robust capitalization and ample liquidity. S&P acknowledged robust shareholder support as a key rating factor underpinning its assessment of NDB’s strong business profile. S&P assessed NDB’s risk management policies as sound and similar to its highly rated peers.
August, 3 2018, Fitch Ratings (“Fitch”) assigned New Development Bank (“NDB”) a Long-Term Issuer Default Rating (IDR) of ‘AA+’ with a Stable Outlook. Fitch has also assigned NDB a Short-Term IDR of ‘F1+’.
Fitch stated in its press release that NDB’s AA+ rating is driven by the intrinsic features, based on Fitch’s long-term projections. Fitch considers NDB’s capitalization as “excellent” and risk profile as “low”. Fitch assesses NDB’s risk management policies as “strong”, mainly reflecting the bank’s self-imposed prudential rules, primarily on the capitalization and liquidity fronts.
August, 20 2019, Japan Credit Rating Agency, Ltd. (JCR) assigned ‘AAA’ long-term issuer ratings with a stable outlook to the New Development Bank (“NDB”).
In its press release JCR stated that NDB’s ‘AAA’ rating is based on its appraisal of the strong support for the Bank’s operations by the member countries, the NDB’s solid capital base and conservative risk management framework to ensure financial soundness, and the preferred creditor status enjoyed by the Bank. “JCR believes that the NDB will adequately fulfill its role as an MDB set up for emerging countries by emerging countries,” stated the rating agency.
January 23, 2020 Analytical Credit Rating Agency (JSC) (“ACRA (JSC)”) assigned ‘AAA’ rating, outlook Stable, under the international scale and ‘AAA(RU)’, outlook Stable, under the national scale for Russia to the New Development Bank.
ACRA stated in its press release that the credit rating assigned to the NDB is primarily based on its very strong intrinsic financial strengths that stem from strong capital adequacy, a strong risk profile, strong liquidity and funding, as well as its systemic importance to the shareholder founding members that enhances the quality of commitments.
“The Bank’s management quality, strategy, and operational transparency are strong,” stated the rating agency.
July 13, 2016 China Chengxin International Credit Rating Co. Ltd (“CCXI”) and China Lianhe Credit Rating Co., Ltd. (“Lianhe Ratings”) assigned NDB a Local Currency Issuer Rating of ‘AAA’ with a Stable Outlook.
According to the two leading Chinese rating agencies, NDB’s main credit strengths are:
Strong shareholder support and timely contribution of paid-in capital
Sound management, governance standards, and prudent risk management framework
Clear development strategy,
High quality of the loan portfolio and very low risk of default,
Significant amount of paid-in capital and strong ability of fund raising,
Rapid growth guaranteed by robust demand for financing of infrastructure and sustainable development projects in member countries.