International credit rating agency, Standard & Poor's, upgraded on Thursday, 24 July, 2003, the long-term issuer credit and unsecured debt ratings of the African Development Bank (ADB) from AA+ to AAA, with a stable outlook. S&P’s had downgraded the long-term issuer credit of the bank from AAA to AA+ in August 1995.
With the upgrade, ADB now enjoys the highest ratings possible from all major rating agencies, Japan Credit Rating, Fitch, Moody's and Standard & Poor's. Reacting to this development, ADB Group President Omar Kabbaj, whilst expressing appreciation for the upgrade, emphasized that the excellent ratings of ADB reflect the consistently strong shareholder support and the effects of the institutional reforms embarked upon over the last eight years.
He also noted that it is a recognition of the shifts in strategic orientations over the years to ensure that the group continues to adequately address Africa's development needs, while maintaining a solid financial position.
Kabbaj also highlighted that the solid credit-worthiness of the bank, as represented by the excellent ratings by all the major rating agencies, enables ADB to borrow in the international capital markets at competitive rates, thereby enabling African countries to borrow from it at interest rates significantly lower that what they would otherwise obtain on their own.
Such reduced cost of lending is important to the development efforts of these countries, he noted. Finally, Kabbaj expressed confidence that with the bank's team of experienced and dedicated staff, a solid shareholder backing and financial position, the bank remains well positioned to continue playing a leading role in addressing the significant development challenges in Africa. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
