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

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JULY 7, 2016 1

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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)


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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