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BRICS Bank Given Favorable Rating By International Agencies


08/30/2018


BRICS Bank Given Favorable Rating By International Agencies
International ratings agencies S&P Global Ratings and Fitch Ratings have given favorable ratings for the newly formed BRICS New Development Bank (NDB), said the Shanghai-based bank on Wednesday.
 
According to the bank, a AA+ long-term and A-1+ short-term issuer credit rating have been announced by S&P for the bank on Wednesday. The international rating agency also issued a stable outlook for the NDB in the announcement. the bank was also given a favorable rating earlier thing month by another rating agency Fitch which the bank's long-term issuer default rating (IDR) at AA+ along with the short-term IDR at F1+ and awarded a stable outlook for the bank.
 
"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 said.
 
The president of NDB president, K.V. Kamath said that the ratings awarded to the bank by the two most well known and respected rating agencies of the world is reflective of the NDB's "strong financial profile" and the ratings also endorse "the prudent future growth plans of the bank and sound risk management practices".
 
Following the ratings by the agencies, the bank is now in a strong position for it to acquire and mobilize financial resources at rates that would be very competitive, Kamath said. this would also significantly enhance the capacity of the bank to lend money to the BRICS member countries who are the founders and initial financers of the bank.
 
"These ratings also mark the beginning of an exciting period for the bank wherein it will look to establish itself as a benchmark issuer in global capital markets. This milestone enables the bank to offer a full suite of financial products to its public and private sector clients," he added.
 
The NDB was founded in 2014 by the member countries of BRICS - Brazil, Russia, India, China and South Africa, and it is a multilateral development bank. The aim of founding the bank is to provide support through funding for the infrastructure development and for the sustainable efforts and development programs of the member countries of the BRICS as well as for other emerging countries and economies. The bank is based in Shanghai and started formal operations in 2015.
 
(Source:www.xinhuanet.com)


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