Fitch affirms long-term rating of International Investment Bank at “A-“ with a stable outlook
On August 18, 2021 international credit rating agency Fitch Ratings affirmed long-term rating of International Investment Bank at “A-“ with a stable outlook.
The rating affirmation, IIB's third in 2021, praised the Bank’s financial stability and its effective response to the consequences of the COVID-19 pandemics.
Among the main factors underpinning the A- rating, Fitch indicates the financial solvency and risk profiles supported by current and forecasted capitalization levels, robust liquidity, stable business environment, further growth of volumes, diversification and quality of lending operations following the relocation of its Headquarters to Budapest in 2019 as well as sustained support of its member states.
Fitch underlines that despite the strong negative effect of the COVID-19 pandemics on the global economy, the Bank has not deviated from its established business plan and continues to steadily and successfully bring its long-term strategy into life.
The agency positively assesses the further improvement of the average credit quality of the Bank’s loan and documentary portfolio owing to the ongoing lending focus on EU-based borrowers in line with the IIB’s Europeanisation strategy.
The agency highlights that IIB demonstrates a strong liquidity buffer and high level of the treasury assets’ quality. The agency states the growing ability of the institution to raise money in the capital markets and the increasing diversification of funding sources, including through the 1.5 bn. Euro MTN Programme registered in 2020 on the Dublin Stock Exchange.
“Affirmation of IIB long-term credit rating at “A-“ with a stable outlook gives another important confirmation of the Bank’s stability and dynamic development in full compliance with our strategy.” - commented Nikolay Kosov, Chairperson of the IIB Management Board, - “It’s a strong positive signal which will be favourably received by our investors, clients and partners and will have a corresponding impact on the scaling up of our support to member states”.