Moody's retains highest rating for ADB

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.