New Delhi: Rating agency Moody's has
retained the highest rating for Asian Development Bank as the
bank's financial profile is quite strong despite its lending
remaining concentrated to nations like China, India, Pakistan
and the Philippines.
The rating agency has maintained a stable outlook on 0its
'Aaa' rating for the Asian Development Bank, Moody's said in
a statement today.
Moody's said although asset concentration is relatively
high, with sizable exposures to Indonesia, China, India,
Pakistan, and the Philippines, "non-accruals and callable
contingent guarantees remain negligible".
"The bank's strong preferred creditor status provide
substantial protection against the worst-case — though highly
unlikely — scenario of several of the bank's large borrowers
entering non-accrual status.
"Nonetheless, should such a dire scenario emerge, the
bank's bondholders would also be protected by the large amount
of callable capital available," Moody's Senior Analyst Aninda
Mitra said.
Moody's added that despite the bank's outstanding loans
and investments beginning to decrease the headroom between
lending and borrowing, it has not weakend ADB's credit profile
nor its income-generating capacity.
Bureau Report
First Published: Wednesday, November 18, 2009, 22:08