On May 16, 2023, Fitch Ratings affirmed the New Development Bank’s credit rating at ‘AA’ and changed the outlook to Stable from Negative.
In its report, which follows NDB’s successful return to international capital markets in April 2023, Fitch Ratings expressed a view that it is more likely that the Bank will be able to successfully execute its medium-term strategy, including continuing to grow its balance sheet and attract new shareholders.
The Agency noted that NDB’s capitalisation and solvency risks remain resilient, and that the Bank’s approach to diversifying its funding mix will support its ability to access resources at a low cost over the medium term.
“The adjustment of the Bank’s rating by Fitch to AA with a Stable Outlook is a positive development for NDB. It provides a solid platform for the execution of our funding strategy to diversify our funding sources in both hard currencies and the local currency of our member countries,” said Mr. Leslie Maasdorp, NDB Vice-President and Chief Financial Officer.
The full text of the Research Update could be accessed on the Fitch website.
New Development Bank was established with the purpose of mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging market economies and developing countries, complementing the efforts of multilateral and regional financial institutions for global growth and development. In 2021, NDB initiated membership expansion and admitted Bangladesh, Egypt, United Arab Emirates and Uruguay as its new member countries.