Fitch Ratings has affirmed
The Short-Term IDR has been affirmed at 'F1+'.
At the same time, Fitch is withdrawing ADBC's Support Rating and Support Rating Floor, as they are no longer relevant to the agency's coverage following the publication of our updated Bank Rating Criteria on
Key Rating Drivers
Government Support-Driven IDR: ADBC's Long-Term IDR is driven by our assessment of a very high probability of the central government supporting the bank in a timely manner in the event of stress, as expressed by the newly assigned GSR, which is equivalent to
ADBC's Short-Term IDR is at the higher of the two options for a Long-Term IDR of 'A+', reflecting our expectations that government support is more certain in the near term.
Role as State Agent: ADBC is
We do not assign a Viability Rating to ADBC as it effectively acts as an agent of the state. Its policy role also renders its Standalone Credit Profile, including the assessment of its financial ratios, less meaningful.
Policy Lending Prioritised: ADBC's policy role remains intact, even though policy institutions, including ADBC, are asked to adhere to the same prudential requirements as commercial banks under the
Rating Sensitivities
Factors that could, individually or collectively, lead to negative rating action/downgrade:
The IDRs and GSR are likely to move in tandem with
The Short-Term IDR will be downgraded if the sovereign's Short-Term IDR is downgraded, or if ADBC's Long-Term IDR is downgraded to 'A-' or lower.
Factors that could, individually or collectively, lead to positive rating action/upgrade:
An upgrade of
Best/Worst Case Rating Scenario
International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from '
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
Public Ratings with Credit Linkage to other ratings
ADBC's IDRs are directly linked to
ESG Considerations
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg
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