Fitch Ratings upgraded the International Investment Bank’s (IIB) long-term credit rating to BBB+ with a stable outlook, the agency said on November 23, making the fourth positive rating action for the bank by an international rating agency this year.
Fitch attributed the upgrade to significant improvement in the quality and geographical diversification of IIB’s loan portfolio, a stronger internal risk management framework as well as a significantly higher quality of treasury assets.
The agency notes a much higher credit quality of the portfolio thanks to the increased share of AAA and AA-rated bonds in its treasury holdings, as well as a successful effort to diversify IIB's own funding sources.
In April, Moody’s Investors Service upgraded IIB's long-term credit rating to A+ with a stable outlook. The main drivers of the rating action were its higher asset quality, strengthened risk management system, high level of diversification of the credit portfolio and funding strategy, as well as a tangible improvement in its treasury asset quality.
IIB is a multilateral development institution founded in 1970 and reformed in 2012. Its current nine members/shareholders are Bulgaria, Cuba, the Czech Republic, Hungary, Mongolia, Romania, Russia, Slovakia and Vietnam, all participating through intergovernmental agreements. In April 2015, the IIB opened its first European regional office in Bratislava.