Asian Development Bank · statistical tables and information in this article refer only to the...
Transcript of Asian Development Bank · statistical tables and information in this article refer only to the...
Asian Development Bank
Primary Credit Analyst:
Rebecca Hrvatin, Melbourne +61 3 9631 2244; [email protected]
Secondary Contact:
YeeFarn Phua, Singapore (65) 6239-6341; [email protected]
Table Of Contents
Major Rating Factors
Rationale
Outlook
Stand-alone Credit Profile: 'aaa'
Business Profile: Extremely Strong
Policy Importance
Governance And Management Expertise
Financial Profile: Very Strong
Capital Adequacy
Leverage
Earnings
Risk Position
Funding And Liquidity
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Table Of Contents (cont.)
Likelihood Of Extraordinary Shareholder Support
Related Criteria And Research
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Major Rating Factors
Strengths:
• Strong public policy mandate, which supports the business profile.
• Capital position likely to improve due to the equity increase from the Asian
Development Fund (ADF) into the Ordinary Capital Resources (OCR) in
January 2017 to sustain the financial profile.
• Significant amount of callable capital from 'AAA'-rated shareholders.
• Expected continued treatment as a preferred creditor.
Counterparty Credit Rating
Foreign Currency
AAA/Stable/A-1+
Weaknesses:
• High concentration of sovereign borrowers in Asia.
Rationale
We base our ratings on AsDB on our assessment of its extremely strong business profile and very strong financial
profile. We consider the unwavering public policy mandate and the preferred creditor treatment for the bank as key
strengths. We expect the AsDB to maintain its healthy liquidity position, strong funding presence, and high
capitalization level. These factors underpin our assessment of its stand-alone credit profile (SACP) of 'aaa'.
AsDB promotes economic and social development of its members in Asia-Pacific, through loans, policy dialogues,
technical assistance, equity investments, grants, and guarantees. Ranked by size of purpose-related exposures, the
bank is the fourth-largest multilateral lending institution that we rate globally, after the European Investment Bank, the
International Bank for Reconstruction and Development, and the Inter-American Development Bank.
In our view, AsDB's role, public policy mandate, and membership support anchors our assessment of its extremely
strong business profile. Our assessment also reflects our expectation that the bank will continue to receive preferred
creditor treatment, given the payment record of AsDB's borrowing members. Although there have been instances of
arrears by Myanmar, Nauru, and Marshall Islands, the amounts were small and were eventually repaid, with interest.
As of Dec. 31, 2015, AsDB has no sovereign and nonsovereign loan in nonaccrual status. In addition, it has never
written off a sovereign loan funded from its Ordinary Capital Resources (OCR).
The Asian Infrastructure Investment Bank (AIIB) is a Chinese government initiative to spur infrastructure investment
in Asia. Once fully established, AIIB's lending volume could eventually eclipse that of the AsDB. This may potentially
weaken AsDB's role and public policy mandate in Asia. That said, this is not our base-case scenario. The region's
infrastructure needs are immense, and will be larger than what one multilateral lending institution can handle. We
believe AIIB will cooperate, rather than compete, with AsDB and other multilateral lending institutions to boost the
level of infrastructure and developmental growth in the Asian region. Notably, the AIIB president was vice president at
AsDB for five years. As of June 2016, AIIB's shareholder structure includes 57 prospective founding members
(compared with 67 members for AsDB), 31 of which have ratified the articles. There is the notable exception of AsDB's
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two largest shareholders--Japan and the U.S.
AsDB benefits from the support of its members and a diverse shareholder base. As of Dec. 31, 2015, 48 members from
Asia-Pacific own 63.6% of the bank and 19 nonregional members own the remainder. While Japan and the U.S. have
always been the AsDB's largest shareholders (Japan owns 15.6% while the U.S. owns 15.5%), the bank's shareholder
base is diversified with eight governments owning more than 5% of the capital each. These include China (6.5%), India
(6.3%), Australia (5.8%), Indonesia (5.5%), Canada (5.2 %), and Korea (5.0%). Nonborrowing members have about 61%
of the voting rights of AsDB. We believe this helps the bank adopt prudent lending and investments policies.
AsDB's RAC ratio stood at 29% before any adjustments at year-end 2015. After adjustments specific to multilateral
lending institutions, the bank's RAC ratio falls to 17%. The primary adjustment we apply specifically to AsDB is the
concentration penalization for sovereign regional exposures. China, India, Indonesia, Pakistan, and the Philippines
were the top five credit exposures at year-end 2015, and they combined accounted for 75%-85% of total loans and
guarantees over the past five years. This is offset to some extent by our expectation of continuing preferred creditor
treatment and geographic diversification.
AsDB's total capital increased to US$17.4 billion in 2015 (from US$16.9 billion in 2014). Our assessment of capital
adequacy assumes that the bank's ability to generate capital internally combined with the latest general capital
increase will prevent its capital ratios from falling below 15% of risk-weighted assets for 2016.
The transfer of Asian Development Fund (ADF) loans and certain other assets to ADB's Ordinary Capital Resources
(OCR) will be effective in January 2017. We expect the additional assets to increase AsDB's total lending capacity
substantially due to the addition of nonleveraged ADF equity to the OCR. The equity would triple to approximately
US$50 billion in 2017. The distinctions between the countries that qualify for ADF and OCR may no longer be valid
because the gaps between their social and economic indicators have narrowed. After the transfer, lower-income
countries currently eligible for ADF loans will continue to receive concessional lending terms and conditions under the
expanded OCR.
We expect AsDB's RAC ratio both before and after adjustments to improve significantly after the merger. This is
mainly due to the substantial increase in equity, decreased concentration risk of the consolidated portfolio and
reduction in single country exposures due to diversification. Subsequently, the bank's preferred creditor treatment may
be weakened after the merger.
AsDB is a frequent debt issuer, broadly diversified by both geographic market and type of investor, given its issuance
in various markets and currencies. According to our liquidity ratios, we expect AsDB to be able to meet its obligations
under stressed market conditions and without access to the capital markets for at least one year.
Given the 'aaa' SACP on AsDB, the ratings on the bank do not rely on callable capital. However, should AsDB's cash
capital position weaken, we note that the bank could call on 11 'AAA'-rated shareholders to provide up to US$27
billion of callable capital (27% of total liabilities at year-end 2015) to support its debt servicing requirements.
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Outlook
The stable outlook reflects our expectation that the AsDB's business profile will remain anchored by borrowers treating
the bank as a preferred creditor. We view the bank's capital levels, funding, liquidity, and its 'AAA' callable capital as
sufficiently robust that there is a less than one-in-three possibility that we would lower our issuer credit rating on AsDB
in the next 24 months.
Downside scenario
The rating could come under pressure if, contrary to our expectations, the AsDB management adopts more aggressive
financial policies, loan growth distinctly increases without commensurate equity growth, or the bank's derivative
activities generate persistent operating losses. Should preferential creditor treatment weaken on the diversified
portfolio as a result of the merger, the rating could also come under pressure.
Stand-alone Credit Profile: 'aaa'
Our assessment of AsDB's SACP reflects our opinion of its extremely strong business profile and very strong financial
profile.
Business Profile: Extremely Strong
Our assessment of AsDB's business profile is based on our view of the bank's policy importance to its shareholders and
its governance and management expertise.
Policy Importance
AsDB was founded in 1966 by international treaty to develop and promote growth in Asia by financing long-term
infrastructure projects in developing member countries. AsDB has 67 shareholders, of which none has withdrawn over
the bank's history, and we do not expect that any will do so in the near term. The shareholder group is diverse and
balanced, with 48 government shareholders in the region, and no private sector shareholders.
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Chart 1
The bank has a well-established policy mandate, with a lengthy track record that includes many credit cycles and five
increases in capital subscriptions. AsDB's earnings are exempt from taxes, given the nature of its directive.
AsDB's primary activity is to provide loans for specific projects or programs for sovereign and non-sovereign
borrowers to assist developing member countries. AsDB's loans target three core areas: economic growth,
environmentally sustainable growth, and regional integration as part of the Strategy 2020 policy goals. AsDB extends
loans predominantly through its OCR account, which consists of paid-in capital, retained earnings (reserves), and some
proceeds from borrowings. In addition, the bank has various concessional funds available to borrowers with low per
capita income and limited debt repayment capacity, the largest of which is the ADF. (Unless otherwise specified, all
statistical tables and information in this article refer only to the bank's OCR activities.)
On Jan. 1, 2017, AsDB will be transferring certain AsDB assets from ADF to the OCR. The merger will triple the
current amount of equity in the OCR, providing a large boost to the bank's total lending and grant approvals to about
US$20 billion a year (about US$40 billion if including co-financing). Other benefits of the merger include diversification
of AsDB's loan portfolio and strengthening of the bank's risk-bearing capacity on its business and financial profiles.
AsDB provides guarantees and makes equity investments in addition to its primary lending activity. The bank also
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provides technical assistance, grants, and loans for project preparation, planning, and evaluation. We believe these
ancillary services supplement AsDB's policy importance and role to its member countries.
AsDB, as a major multilateral lending institution, receives implicit preferred creditor treatment from its borrowing
members, who have historically serviced their AsDB debt even while in arrears on other commercial or bilateral loans.
We believe the addition of ADF loans via the merger will result in a weakening somewhat in the creditworthiness of
loans transferred to the OCR. As a consequence, the preferred creditor treatment may wane in the unlikely event of
concessional borrower default.
Governance And Management Expertise
Strengths
• The bank's founding charter outlines strong governance standards and a clear mandate.
• The extensive experience of the sizeable management team minimizes key-person risk.
• Non-borrowing members of AsDB held more than 60% of the total voting power at fiscal year-end 2015.
• Superior financial and risk management policies encapsulate AsDB's considerable financial derivatives operations
and the conservative investment of liquid assets.
AsDB is headquartered in Manila, and has approximately 3,000 employees operating in 31 field offices around the
world. The current president is Takehiko Nakao. This office has always been held by a Japanese citizen, indicating the
bank's close working relationship with Japan. Mr. Nakao's current term as president ends on Nov. 23, 2016. In April
2016, Mr. Nakao announced his intention to stand for re-election for the customary five-year term.
Under AsDB's charter, the board of governors holds all power of the bank and is the bank's highest decision-making
body. The general operations of AsDB rest with the board of 12 directors, each with an alternate who is elected by the
governors every two years. The charter allows the board of governors to delegate to the board of directors all its
powers, except those whose delegation is expressly prohibited by the charter.
We believe that AsDB's risk and financial management policies are prudent. We envisage the bank will continue to
manage its derivatives position exclusively for hedging purposes and that it will not engage in active trading activities.
AsDB maintains a conservative liquidity policy to guard against a liquidity shortfall in case access to capital markets is
temporarily denied. The prudential minimum liquidity to be held during a year is 45% of the bank's three-year net cash
requirement. Maintaining the prudential minimum liquidity would enable AsDB to cover normal net cash requirements
for 18 months without borrowing. The bank's treasury portfolio was US$24.7 billion at end-2015, decreasing from
US$25.2 billion in 2014. The ratio of liquid assets to the bank's undisbursed loan balances plus equity investment and
estimated one-year debt service decreased slightly to 59.1% (from 60.1% in 2014).
AsDB's treasury portfolio is largely invested in conservative assets, such as money market instruments and
government securities. Rigorous eligibility criteria are maintained for securities, including:
• Long-term ratings of 'A+' or higher or short-term ratings of 'A-1' or higher on financial institutions for deposit
placements;
• Ratings of 'AA-' or higher for debt issued by sovereigns, government agencies, or multilateral lending institutions. In
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the case of sovereign debt, such debt is denominated in the national currency of the issuer and therefore no rating is
required; and
• 'A-' ratings for corporate debt securities (and only up to 10% of the U.S. dollar sub-portfolio).
Additionally, AsDB's considerable swap book risks are controlled via counterparty exposure limits, daily
marked-to-market collateral calls, and the eligibility criteria. All swap counterparties are rated at least 'A-', and current
exposure to counterparties rated below 'A+' is generally fully collateralized. At the end of 2015, all of AsDB's
marked-to-market exposure was collateralized, except for one 'AA-' counterparty whose uncollateralized exposure was
within its established threshold.
Financial Profile: Very Strong
Our view of AsDB's financial profile incorporates our calculation of the bank's capital adequacy and its funding and
liquidity profiles.
AsDB prepares its financial statements according to U.S. generally accepted accounting principles.
Table 1
Asian Development Bank -- Selected Financial Statistics
(Mil. US$)2015 2014 2013 2012 2011
Asssets
Due from banks and time deposits, of which: 2,061 4,388 3,946 1,574 1,340
Assets in banks subject to restrictions 0 107 97 72 95
Securities 22,133 20,322 21,720 23,148 21,082
Loans outstanding 61,975 55,925 53,124 52,880 49,794
Allowance for loan losses (34) (35) (36) (43) (35)
Equity investments 862 862 819 949 971
Receivable from members 0 0 0 0 0
Receivable from swaps 29,538 33,092 35,043 38,530 37,593
Other assets 1,162 1,106 1,252 2,825 2,565
Total assets 117,697 115,660 115,868 119,864 113,310
Liabilities
Borrowings, of which: 66,054 62,701 61,630 64,780 58,278
Portion maturing during next year 14,234 14,053 13,265 13,046 10,626
Payable for swaps 32,272 33,987 34,347 34,092 34,042
Other liabilities 1,925 2,034 2,753 4,572 4,456
Total liabilities 100,251 98,722 98,730 103,444 96,777
Capital
Paid-in capital 7,293 7,229 6,843 6,010 5,237
Other capital 10,153 9,709 10,295 10,410 11,297
Shareholders' equity 17,446 16,938 17,138 16,420 16,534
Other items:
Guarantees 1,407 1,740 1,780 1,905 1,995
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Table 1
Asian Development Bank -- Selected Financial Statistics (cont.)
(Mil. US$)2015 2014 2013 2012 2011
AAA' callable capital 26,850 30,022 31,997 33,447 37,542
Borrowings and other financial expenses 374 317 400 520 368
Administrative expenses 383 352 411 351 316
Operating income 343 571 469 465 587
Undisbursed effective loans 25,911 26,140 21,907 21,792 18,476
Undisbursed equity investments 432 433 587 652 612
Nonaccrual loans 0 0 0 18 23
Sum of loans to five largest borrowing countries 48,016 44,944 43,619 44,688 43,096
Capital Adequacy
Capital and earnings
In our opinion, AsDB's capitalization remains comfortable. As of end-2015, our RAC ratio before adjustments for AsDB
was 29%--an extremely strong ratio. Even though the ratio is 17% after adjustments, it still remains very strong. The
concentration penalization for regional sovereign borrowers in the loan portfolio was partly offset by the expectation of
ongoing continued preferred creditor treatment.
AsDB's RAC ratio before and after adjustments should improve significantly after the addition of ADF equity to the
OCR in 2017. This is largely due to the near threefold increase in equity, reduced concentration of the consolidated
loan portfolio, and greater geographic diversification.
Loan pricing. AsDB does not generally vary loan pricing among its borrowing members. It lends to members through
two windows: the LIBOR-based loan window and the local currency loan window.
The LIBOR-based loan window, which has been ASDB's primary lending facility since 2001, offers borrowers loans
denominated in euro, yen, or U.S. dollar. For a large portion of existing public sector loans, the effective contractual
spread over LIBOR is 0.60% (a 0.20% waiver discontinued starting Jan. 1, 2014). For new public sector loans
contracted since Jan. 1, 2014, the contractual spreads have been increased to 0.50% from 0.40%, and are without a
waiver mechanism. The private sector loan spread varies. Results-based lending was recently introduced to support
government-owned sector programs and disburse financing based on program results. The loan terms under
results-based lending are the same as for investment projects. As of Dec. 31, 2015, three OCR loans totaling US$1,025
million were approved by AsDB under results-based lending, with disbursements totaling US$193 million in 2015.
The local currency loan window has two types of financing: back-to-back funding and pool-based transactions. For
back-to-back funding, the cost-base rate is based on AsDB's cost of funding for the specific loan. For pool-based
transactions, costs are calculated based on the relevant floating-rate benchmark.
Loan maturities. AsDB's focus has been on medium- and long-term lending, with maturities for standard loans
typically from five years to 32 years. AsDB introduced a limit on the average loan maturity for new loans not to exceed
19 years. As of Dec. 31, 2015, 141 approved loans (US$21,023 million) were subject to maturity premium.
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Guarantees and equity investments. Under AsDB guidelines, the bank can provide credit guarantees for a portion of a
project's debt service (a partial credit guarantee) or a risk guarantee for specific event risks (a political risk guarantee).
At end-2015, AsDB had outstanding guarantees just over US$1.4 billion, or just over 2% of total loans.
AsDB's charter prevents it from holding equity investments beyond 10% of the value of its unimpaired paid-up capital
stock, reserves other than special reserves, and accumulated surpluses. As of Dec. 31, 2015, AsDB's approved equity
investment (both outstanding and undisbursed), is US$1.2 billion, or 67% of the ceiling. Much of the equity exposure is
to non-sovereign operations.
Leverage
AsDB has low leverage. AsDB's gross outstanding borrowings cannot exceed the sum of callable capital from
non-borrowing members, paid-in capital, and reserves (including surplus). Based on this policy, the bank has
borrowing headroom of US$44 billion (39%). Similar to the International Bank for Reconstruction and Development
and other multilateral lending institutions, AsDB's lending policy limits the total amount of disbursed loans, approved
equity investments, and guarantees to the bank's unimpaired subscribed capital, reserves, and surplus, exclusive of the
special reserve. This ratio was 40% at end-2015, giving the bank lending headroom of US$96 billion.
Chart 2
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Treasury activities
Credit risk. AsDB's aggregate portfolio exposure to credit risk is US$88.6 billion as of end-2015. This consists of:
• Sovereign loans and guarantees (66%);
• Non-sovereign loans and guarantees (6%);
• Fixed income (23%);
• Cash and deposits (4%);
• Equity (1.1%); and
• Derivatives (<0.1%).
Nearly 60% of the fixed-income positions are in high-quality debt securities issued by governments. The rest are in
instruments of government agencies, sovereign guaranteed, supranationals, and corporate entities. Likewise, the cash
and deposits are placed with highly-rated institutions.
Interest-rate risk. Most of AsDB's loans are hedged as the basis for borrowers' interest payments are matched to ADB's
borrowing expenses. This has historically mitigated the interest-rate sensitivity of net spreads between loans and
borrowing costs. The bank mitigates the interest-rate risk on non-cost-pass-through loans by using rate swaps to
closely align the rate sensitivity of these loans with that of their funding.
AsDB's primary exposure to interest risk is thus through its liquidity portfolio. The bank manages this via various
methods including mark-to-market, stress testing, scenario analysis, and monitoring of risk metrics. AsDB uses
duration and value-at-risk as its key measures to assess interest-rate risk in the treasury portfolio. The aggregate
value-at-risk increased slightly to 3.0% in 2015, from 2.7% in 2014, due mainly to slightly increased duration of the
Treasury Portfolio. The duration increased to 2.7 years in 2015, from 2.4 years in 2014, as a result of longer-term
investments.
Exchange-rate risk. AsDB's practice of either on-lending the proceeds of its borrowings in the same currency or
swapping its borrowings into the currency in which it lends minimizes its exposure to exchange rate risk.
Earnings
The bank's net income rose further to US$556 million in 2015, compared with US$387 million the year before. AsDB
has continued to function with stable operating profits and positive net income.
AsDB's operations are consistently run with very low overheads. The ratio of administrative expenses to average
purpose-related exposures is lower than the average for the multilateral lending institutions that we rate. This ratio has
been 0.3%-0.5% over the past five years.
Risk Position
In our view, AsDB benefits from high capitalization, with a RAC ratio before supranational-specific adjustments at
29%. When factoring in these adjustments, particularly single name concentration, geographic diversification, and
expected preferred creditor treatment, the RAC ratio settles at 17%. If AsDB's borrowers abandon their preferred
creditor treatment entirely, our adjusted RAC ratio for the bank would fall significantly. Our RAC ratio considers the
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care with which AsDB manages its exposures, even compared to other multilateral lending institutions, supporting our
assessment of a very strong financial profile.
Table 2
Asian Development Bank--Risk-Adjusted Capital Framework Data
(Mil. US$)Exposure S&P Global Ratings' RWA Average S&P Global Ratings' RW (%)
Credit Risk
Government and Central banks 91,199 42,749 47
Institutions 6,347 2,012 32
Corporate 4,635 6,506 140
Securitization - - -
Other Assets 396 682 172
Total credit risk 102,578 51,950 51
Market Risk
Equity in the Banking Book 947 5,561 587
Trading Book Market Risk - - -
Total market risk - 5,561 -
Operational Risk
Total operational risk - 1,718 -
RWA before MLI adjustments 59,228 100
MLI Adjustments
Single name(On Corporate Portfolio) 2,012 31
Sector(On Corporate Portfolio) (731) (9)
Geographic (9,281) (16)
Preferred Creditor Treatment (11,904) (28)
Single Name (On Sovereign Exposures) 62,558 146
Total MLI adjustments 42,655 72
RWA after MLI adjustments 101,884 166
Adjusted Common Equity S&P Global Ratings' RAC ratio (%)
Capital ratio before adjustments 17,358 29
Capital ratio after adjustments 17
MLI--Multilateral lending institutions. RW--Risk weighting. RWA--Risk-weighted assets.
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Chart 3
AsDB has not suffered any losses of principal on its loans to sovereigns, and it has followed a policy of not taking part
in debt rescheduling agreements with respect to sovereign loans. The bank has experienced few sovereign arrears.
And when members have fallen into arrears, they have generally returned their loans to accrual status such that AsDB
has never had to write off a sovereign loan funded from its OCR. Currently, no sovereign is in arrears to the bank.
The ADF loan portfolio has lower credit worthiness than loans in the OCR. These loans are relatively more prone to
potential sovereign default than that of sovereigns with higher credit quality. In the event of a sovereign default in the
portfolio, the willingness to service debt from multilateral lending institutions could lessen.
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Chart 4
Exposure concentrations. Loans and guarantees to sovereigns comprised about 93% of AsDB's total loans and
guarantees as of Dec. 31, 2015. Out of the 29 members that have outstanding loans from the bank, the five largest
borrowers are China (25.4%), India (23.1%), Indonesia (13.6%), the Philippines (8.2%), and Pakistan (7.3%).
The high concentration of recipients is one of the characteristics of AsDB's operations: the top five borrower countries
account for 77.5% of the bank's total outstanding loans. The inherent credit risk of AsDB's portfolio may rise as
countries with investment-grade ratings repay their loans while loans to countries with lower ratings increase. We
expect this, with the 2017 additional ADF loan book being added to the OCR, and by virtue of ADF borrower
characteristics.
In AsDB's non-sovereign operations, no loan is in non-accrual status as of end-2015. Although these operations
account for a small portion of AsDB's overall operations, the bank envisages to raise this gradually under its Strategy
2020 vision. In our opinion, larger non-sovereign exposure would pose increased credit risks to AsDB's portfolio. A
planned gradual increase of non-sovereign approvals to 25% of total OCR approvals by 2020 is projected to lead to a
non-sovereign share of OCR exposure at about 13% in the same year. The policy further limits non-sovereign
operations in a single country and provides limits for industry sectors, groups, and counterparties.
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Funding And Liquidity
Funding We view AsDB's funding program as broadly diversified by geography and investors. The bank has made
frequent issuances in multiple markets and currencies. AsDB's funding is concentrated in U.S. dollar, with five global
benchmark bonds issued totaling US$9,250 million in 2015 (69% of outstanding borrowings before swaps or 96.6%
after swaps).
AsDB benefits from brand name recognition in the capital market and maintained a diversified funding profile in 2015.
The bank raised the equivalent of US$18,948 million in 2015 (US$14,249 million in 2014) in 11 currencies in medium-
and long-term funding, as well as US$4,082 million of short-term funding under its Euro-Commercial Paper Program
(ECP).
Liquidity AsDB has a large derivatives position as part of its investments, borrowings, and asset-liability management.
At end-2015, derivatives liabilities outstanding amounted to US$32.3 billion, which is equivalent to about 49% of
AsDB's outstanding borrowings. This is mostly offset by US$29.5 billion in derivatives assets.
Our liquidity stress tests for AsDB indicate that the bank would be able to fulfill its mandate for approximately a year,
without access to the capital markets. This is true even under extremely stressed market conditions under which the
sale or repo of liquid assets in the market could only be performed at severe discounts.
Likelihood Of Extraordinary Shareholder Support
We assign no uplift for the likelihood of extraordinary shareholder support, in the form of 'AAA'-rated shareholders
answering one or more calls on their callable capital allocations in the event of a stress scenario. This is because we
already assess AsDB's SACP at our highest level without such support.
However, should AsDB's SACP weaken, we consider that 'AAA'-rated shareholders could uphold the bank by
potentially answering one or more calls on their callable capital allocations in the event of a stress scenario. Eleven
'AAA'-rated shareholders could provide up to about US$27 billion of callable capital (27% of total liabilities at
end-2015) to support AsDB's debt servicing requirements.
Related Criteria And Research
Related Criteria
• General Criteria: Use Of CreditWatch And Outlooks - September 14, 2009
• General Criteria: National And Regional Scale Credit Ratings - September 22, 2014
• General Criteria: S&P Global Ratings' National And Regional Scale Mapping Tables - June 01, 2016
• Criteria - Financial Institutions - Banks: Bank Capital Methodology And Assumptions - December 06, 2010
• Criteria - Governments - General: Multilateral Lending Institutions And Other Supranational Institutions Ratings
Methodology - November 26, 2012
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Ratings Detail (As Of July 7, 2016)
Asian Development Bank
Counterparty Credit Rating
Foreign Currency AAA/Stable/A-1+
Commercial Paper
Foreign Currency A-1+
Senior UnsecuredGreater China Regional Scale cnAAA
Senior Unsecured AAA
Counterparty Credit Ratings History
03-Jan-1990 Foreign Currency AAA/Stable/A-1+
18-Sep-1989 AAA/Stable/--
02-Apr-1971 AAA/--/--
Related Entities
Credit Guarantee and Investment Facility
Issuer Credit Rating
Foreign Currency AA/Stable/A-1+
ASEAN Regional Scale axAAA/--/--
Senior UnsecuredASEAN Regional Scale axAAA
Senior Unsecured AA
*Unless otherwise noted, all ratings in this report are global scale ratings. Standard & Poor's credit ratings on the global scale are comparable
across countries. Standard & Poor's credit ratings on a national scale are relative to obligors or obligations within that specific country. Issue and
debt ratings could include debt guaranteed by another entity, and rated debt that an entity guarantees.
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