Moody's Affirms Asian Development Bank's Aaa Rating

Moody's has affirmed Asian Development Bank's (ADB) long- and short-term rating at "Aaa" and maintained its stable outlook.

The global rating agency said in a statement on Monday that the bank has a high intrinsic financial strength, very strong access to funding markets, and adequate liquidity buffers.

"ADB has formulated a substantial policy response to the global coronavirus shock, with an envelope of $29 billion in direct COVID19-related financing thus far, constituting a mixture of lending, grants, and technical assistance," the statement said.

"This pivot led to a record $31.6 billion in commitments in 2020 and a corresponding acceleration in the expansion of its loan portfolio, with pandemic-related disbursements totaling $10.2 billion over the same period," it added.

The bank's stable outlook reflects its ample capital adequacy, strong liquidity and funding, and solid shareholder support, Moody's said.

The agency, however, warned that ADB's rating might be downgraded if there is a substantial deterioration in capital adequacy, or if a deterioration in governance led to a decline in financial performance or threatened its access to funding markets. -