In a statement, the debt-watcher said it “affrimed its 'AAA' long-term and 'A-1+' short-term foreign currency issuer credit ratings” on ADB. The outlook on the long-term rating is stable.
ADB's ratings reflect the bank's “extremely strong” business profile and “very strong” financial profile, which are the debt-watcher's criteria for multilateral lending institutions, S&P added.
According to S&P, an 'AAA' – the highest issuer credit rating – indicates that an obligor has extremely strong capacity to meet its long-term financial commitments.
'A-1+' means an obligor's capacity to meet its short-term financial commitment on the obligation is very strong.
“Our business profile assessment is based on our view of the ADB's role, public policy mandate, and membership support,” S&P credit analyst Yee Farn Phua said in the statement, referring to the reassessment of ADB's financial profile to “very strong” from “strong.”
“It also reflects our expectation that the bank will continue to receive preferred creditor treatment,” Phua added.
ADB's financial profile reflects the bank's capital adequacy, funding, and liquidity.
“The funding ratios we calculate for ADB show that the bank has no funding gaps over the next two years and is broadly matched through five years. Our calculations exclude loan disbursements,” S&P said.
“The stable outlook reflects our expectation that the ADB's business profile will remain anchored by larger borrowers treating the bank as a preferred creditor," said Phua. — Siegfrid O. Alegado/BM, GMA News
source: gmanetwork.com
