The Analytical Credit Rating Agency (ACRA) has affirmed the credit rating of the International Bank for Economic Co-operation on the international scale – A- and on the national scale for the Russian Federation – AAA (RU). The outlook on the affirmed ratings is Stable.
ACRA's official report emphasizes that IBEC's credit rating is based on its high financial performance, strong capital adequacy assessment, satisfactory risk profile assessment, adequate funding and liquidity assessment, as well as moderately strong assessment of the ownership structure and the Bank's support for its member countries.
The rating agency once again notes IBEC strong position on capital, which allows not only to successfully withstand the potential significant deterioration in asset quality, which may be caused by systemic events, including such as the ongoing global COVID-19 pandemic, but also to continue its progressive development. Thus, at the end of 2020, the capital adequacy ratio (Tier-1), calculated according to Basel standards, was 38.94%.
According to the results of 2020, IBEC assets increased by more than 25% and amounted to EUR 815 million. The loan portfolio at the end of 2020 accounted for about 45% of all the Bank’s assets. At the same time, corporate, government, or other guarantees secure a significant share of outstanding loans. The Bank continues to scale up its operations and use proven industry risk management practices that are focused on ensuring stable liquidity and a substantial capital base, maintaining strict credit underwriting criteria and meeting regulatory requirements for treasury operations.
ACRA notes that liabilities are moderately diversified by funding sources. The total volume of long-term borrowings at the end of 2020 amounted to EUR 183 million. Indicators of net stable funding and liquidity coverage – 114 and 316%, respectively.