Fitch Ratings keeps IIB rating as investment grade
Following the decision of S&P Global that affirmed the long-term credit rating of International Investment Bank at “A-“ level with a negative outlook, on March 9, 2022 Fitch Ratings reviewed the institution’s long-term credit rating assigning “BBB” with a negative outlook.
The decision affirms IIB’s average credit rating at investment grade. It is currently at par with a sovereign credit rating of Hungary, one of its main shareholder states.
Despite a number of public announcements made by IIB member states on their intentions to terminate the membership in the organization, Fitch Ratings report directly underlines that the institution’s special status as a supranational institution – multilateral development bank – allows it to remain outside sanctions related to current geopolitical turmoil.
The agency also suggests that the capital adequacy ratio and the levels of liquidity will remain at a high level.
“The Bank has always followed principles of transparency and openness in its relations with all counterparties, be it clients, partners, investors or rating agencies. In today’s unprecedented external environment this becomes more crucial than ever” - commented Elliott Auckland, IIB Chief Economist and Head of Ratings. “We believe that IIB preserving its investment grade average rating in current geopolitical background gives an important signal to the financial community. We sincerely hope for a prompt restoration of peace and for an opportunity to fully return to fulfilment of our mission for the benefit of our member states”.