Capital Intelligence Affirms EDBI Ratings

Capital Intelligence Ratings, the international credit rating agency, announced that it has affirmed the Financial Strength Rating of the Export Development Bank of Iran at ‘BB-’ with a negative outlook. 
According to CI, the FSR is supported by the bank’s sound and increased capital adequacy, its privileged access to low-cost funding and its well-managed cost base. The high non-performing financing (NPF) ratio, together with unprovided NPFs, is an important caveat regarding capital. 
FSR is constrained by a difficult operating environment, sovereign risk and the low amount of usable liquid assets held by the bank. Although financing-based liquidity ratios are sound, the high level of contingent commitments constrains the rating as they could tighten both the liquidity and capital ratios, if drawn before new funding from official sources is made available.