By Ovunc Kutlu
ISTANBUL (AA) - Fitch Ratings said Thursday that it affirmed the European Investment Bank's (EIB) long-term foreign currency issuer default rating at AAA with a stable outlook.
The rating agency said it expects the average rating of loans to remain stable in the medium-term but anticipates a slight increase in non-performing loans, which reflects the risks for European and global economies from high interest rates and Russia's war against Ukraine war.
It said the EIB's exposure to Belarus and Ukraine issuers is very small -- less than 1% of the bank's loan exposure, and they are largely covered by guarantees.
"EIB's disbursement of an around €2 billion Emergency Solidarity Package for Ukraine, which is fully covered by the EU's External Lending Mandate guarantee, in 2022 and 2023 is further evidence of the high importance of the bank's public mandate," it said in a statement.
Fitch warned, however, that a significant deterioration in EIB's capitalization metrics could lead to a rating downgrade.