IIB becomes the first international financial institution rated by the Chinese agency Dagong
The leading international rating agency of China Dagong Global Credit Rating has assigned to the International Investment Bank a long-term credit rating of ‘A’ with outlook ‘stable’. The IIB has become the first IFI with a rating from the Chinese agency.
This is already the Bank’s third international credit rating after it obtained ratings from Fitch and Moody’s in 2013 and 2014 respectively.
In its official press release, among key factors of the Bank’s high assessment Dagong notes successful reform of the IIB and implementation of the new strategy, high capital adequacy, which as of June 30, 2015, represented 67.3%, significantly exceeding the average level of other multilateral development banks. In addition, according to the statement, essential criteria of the rating include high liquidity, high level of debt repayment capability and efficient risk management. The agency expects IIB’s rating to be stable for the next 1-2 years.
The assigned rating is highly significant with regard to IIB’s plans on diversification of its operations in Asia and in China in particular. The Bank intends to continue strengthening ties with Asian countries, having among its members such active regional players as Vietnam and Mongolia and recognising the importance of operating in this dynamically growing region.
On the Asian track, the IIB prioritises enhancing support to the development of trade operations and increasing their volume between the member states and Asian countries, attracting funding from large regional financial institutions and potentially entering Asian capital markets. Thus, in September 2015 the IIB already supported import of Chinese goods to the Russian Federation under a trade finance transaction and is now reviewing a whole range of similar projects with China, Republic of Korea, Turkey and others.
Overall, the IIB plans to expand all areas of its activities in Asia, with confirmed interest on the side of the Bank’s shareholders as well as business representatives and the financial community of the region.
