JANUARY 11, 2013

SOVEREIGN & SUPRANATIONAL

CREDIT ANALYSIS

IBRD (World Bank)
Supranational

Table of Contents: SUMMARY RATING RATIONALE 1 ORGANIZATION STRUCTURE AND STRATEGY 2 ASSET/LIABILITY MANAGEMENT AND LIQUIDITY 4 CAPITAL ADEQUACY 4 ASSET QUALITY 6 PROFITABILITY 8 RATING HISTORY 9 ANNUAL STATISTICS 10 MOODY’S RELATED RESEARCH 14 RELATED WEBSITES 14 Analyst Contacts:
NEW YORK Steven A. Hess Senior Vice President steven.hess@moodys.com +1.212.553.1653 +1.212.553.4741

Summary Rating Rationale
Moody’s rates the International Bank for Reconstruction and Development (IBRD), more commonly known as the World Bank 1, Aaa for long-term bond issues and Prime-1 for the short-term discount note program; the outlook is Stable. The key factors supporting the ratings are: (1) a strong capital base and support from its highly- rated shareholders; (2) its proven status as a preferred creditor; and (3) its sound financial management. Prudent financial policies—with the Bank having consistently remained well within its internal borrowing and lending limitations—are reflected in the IBRD’s healthy capital adequacy and liquidity ratios. As a result of its conservative practices and its preferred creditor status, the Bank has weathered relatively smoothly periods of global financial uncertainty and has maintained its fundamental strengths both in terms of its own historical record and in comparison to many other financial institutions. The biggest risk to the Bank’s financial position would come if more than one large borrower were to enter into nonaccrual status. The Bank’s preferred creditor position provides substantial protection against such an event, and Moody’s believes it remains unlikely that there would be a significant number of large borrowers in nonaccrual at the same time. The Bank’s strong liquidity position, the ability to reduce lending activity if necessary, and the availability of other sources of funds, make a resort to a call on capital only the last line of defense. This is a highly unlikely scenario, even in the event of a major increase in nonaccruals. Still, in a worst case scenario, where a number of large borrowers are unable or unwilling to make payments, bondholders are ultimately protected by the large amount of callable capital available to the IBRD.

Annette Swahla +1.212.553.4037 Analyst annette.swahla@moodys.com Bart Oosterveld +1.212.553.7914 Managing Director-Sovereign Risk bart.oosterveld@moodys.com

This Analysis provides an in-depth discussion of credit rating(s) for IBRD (World Bank) and should be read in conjunction with Moody’s most recent Credit Opinion and rating information available on Moody's website.

1

“IBRD”, the “World Bank” and the “Bank” are used interchangeably in this document.

respectively. who as of June 30.. Funding risks are minimal. In addition. it remains geographically diverse relative to other MDBs. with the top ten borrowing countries including only two Eastern European countries -. The IBRD lends exclusively to member countries that meet eligibility requirements. recent sovereign downgrades in Europe have not substantially reduced the strength of member support that Moody’s incorporates in the IBRD’s Aaa rating. with 16. and the International Centre for Settlement of Investment Disputes. China.SOVEREIGN & SUPRANATIONAL The IBRD has never suffered any loss on principal in relation to loans made to borrowing countries and it did not experience any increase in loan arrears as a result of the last emerging markets crisis. subscribed 57. As part owners of the IBRD. the Bank’s lending activity is minimally exposed to Europe.15% of total capital. The support from the shareholders of the IBRD—be it in the form of timely loan repayment and/or capital contributions—confers tangible benefits to all member countries. the Multilateral Investment Guarantee Agency (MIGA). the others having regionally-focused operations. The ongoing and protracted European sovereign debt crisis is unlikely to impact the strong financial standing of the IBRD.5% of subscribed capital. While there is a degree of concentration risk in the loan portfolio. France.Poland and Romania. or to 2 JANUARY 11. a vehicle for lending to or investing in private companies in emerging markets without the benefit of host country government guarantees. and private financial institutions.7%.and shorter-term adverse developments. The World Bank Group (including the IFC) is the only global MDB. Organization Structure and Strategy The IBRD is one part of the larger World Bank Group. as of June 30.6% of the total portfolio. as evidenced by the continued strong demand during 2012 for IBRD bonds as investors sought safety amid the sovereign turmoil (the US debt ceiling and fiscal uncertainty and European sovereign debt turmoil). includes healthy capital and liquidity buffers against longer. which also includes: the International Development Association (IDA). the Bank’s financial strength. The Bank finances both investment projects and development policy programs in support of policy reforms alongside borrowing governments. 2012. which insures certain investments against political risks in emerging markets. independent of member support. The top 11 shareholders. This record was tested again during the global crisis but the Bank’s exceptional risk management policies and practices ensured that no loans entered nonaccrual status despite the unprecedented financial and economic turmoil during the FY2008-FY2010 period. at 4. and protects the Aaa rating. The United States is the single largest shareholder of the IBRD. and Italy) and the rest includes the U. The IBRD’s main functions are to supplement the domestic savings of borrowing countries with loans and to serve as a catalyst for additional external financial flows to those countries through co-financing arrangements. 2012. Lastly. are geographically diverse relative to other multilateral development banks (MDBs). Japan.1% and 2. Canada. Among them are only three euro area sovereigns (Germany. As such. Its preferred creditor status ensures that the sovereign debt owed to it is excluded from all debt restructuring efforts undertaken by official borrowers and that resources are made available to service the debt due to the Bank. the borrowing countries recognize the importance of maintaining the Bank’s financial soundness and premier credit status in order to minimize its lending charges and to maximize the benefits that they ultimately reap from the organization.S. 2013 CREDIT ANALYSIS: IBRD (WORLD BANK) . the International Finance Corporation (IFC). official aid agencies. and Saudi Arabia. followed by Japan with 9. the group’s soft-loan window.

Complementing the selective capital increase was the creation of a third chair on the Board of Executive Directors for Africa. Overall. verifiable results. of which $3. The Bank does not aim to maximize profits. the Board of Governors approved the capital increase that had been proposed the previous year. although it earns a significant net income. During the fiscal year. After its creation. During FY2012 the IBRD introduced a new lending instrument called Program-for-Results. which commenced in FY2009. The first three years of the program were very successful with annual returns of the LTIP between 10% and 13%. subscriptions received and paid-in related to the general increase amounted to $15.2 billion. 3 JANUARY 11. the Bank decided to liquidate the LTIP in order to maximize its lending capacity to borrowing members. The creation of the LTIP marked a shift in the Bank’s strategy with regard to deployment of its equity capital. The general component amounted to $58. $300 million in commitments were made under the new instrument.6 billion will be paid-in) and increased the voice and participation of developing and transition countries by 4.4 billion. reduced the amount of “excess” capital it was holding.59% since FY2008 to a total voting power of 47. The selective component amounted to $27. One of the main goals of the new instrument is to help member countries improve the design and implementation of their development programs and increase accountability. As of June 30.SOVEREIGN & SUPRANATIONAL borrowers in those jurisdictions under the guarantee of the member states. 2012. The increase includes a general component as well as a selective component that together raised the total subscribed capital by $86. the capital increase supports the Bank’s elevated level of lending after the global crisis as it continues to serve as a counter-cyclical force and leaves it able to respond again should the European sovereign debt crisis spill over to the global real economy. this Voice Reform began in 2008 with the long-term goal of equitable voting power between developed and developing member countries. which had previously been used only to support loans. In April 2012. LTIP Liquidated During FY2012 to Support Elevated Lending Operations To increase its expected operating income over the long term.278 million. compared to roughly 1% annual returns on its liquid asset portfolio over the same period. 2013 CREDIT ANALYSIS: IBRD (WORLD BANK) . The IBRD’s financial policies are comparable to—and are often more conservative than—accepted private sector practice. the global crisis. LTIP returns during FY2012 were much lower at around 3% due to low equity returns.5 billion will be paid-in and the remainder callable. the amount was $917 million. and actions by the IBRD to act as a counter-cyclical force or fill in where private sector lenders had retrenched. during FY2008 the IBRD approved a new investment portfolio called the Long-Term Income Portfolio (LTIP). $1 billion was invested in a diversified risk asset portfolio (developed market public equities and developed market fixed-income investments). As with many MDBs. For the selective increase.19%. equity deemed in excess of what was required to support loans was used to support additional risk assets that the Bank acquired under the LTIP with the objective of enhancing income generation to further its development goals.8 billion (of which $1. The instrument links the disbursement of funds directly to the achievement of defined. Capital Increase Impacts Voting Power and Supports Growth in Lending Operations In March 2011.

2 billion. The Bank judges its capital adequacy as the ability of its equity to generate future net income to support normal loan growth and respond to a potential crisis without having to resort to a call on capital. reserves. IBRD matches borrowings in any one currency with assets in the same currency (as mandated by its Articles) and also undertakes currency conversions to match the currency composition of its equity to that of its outstanding loans. and is conservatively managed to protect the principal amount of the investments while generating a reasonable return. There are various safeguards used to protect capital adequacy.SOVEREIGN & SUPRANATIONAL Asset/Liability Management and Liquidity The aim of IBRD’s asset/liability management framework is to provide adequate funding for each loan and liquid asset at the lowest available cost and to manage the portfolio of liabilities supporting each loan and liquid asset within the prescribed risk guidelines. To minimize exchange rate risk. maturity profile and interest rate sensitivity as needed. an increase of $6. and callable guarantees may not exceed the total value of subscribed capital. the Bank’s actual liquidity has tended to be comfortably above the minimum set by policy. The need for this arose as the loan portfolio shifted from pool loans to floating LIBORbased loans. The liability portfolios are monitored and adjusted for currency composition. In accordance with the Bank’s liquidity policy (which was last revised during FY1997). in general. The strategy has proven successful as interest income from the swaps has offset the fall in interest income from equityfunded loans. from time to time. which increased the sensitivity of IBRD’s operating income to changes in market interest rates. and surplus. which stipulates that the total amount outstanding of disbursed loans. participations in loans. combined with strict lending limitations.0 billion from the previous year. liquidity was $34. Equity Duration Extension Strategy Reduces Interest Rate Sensitivity During FY2008 the Bank implemented an equity duration extension strategy with the goal of reducing the interest rate sensitivity of its operating income by taking a greater exposure to long-term interest rates. The Bank realizes that by having enough resources of its own to absorb risks it protects members from a possible capital call. At the end of the last financial year. the liquid asset portfolio should not exceed 150% of the prudential minimum liquidity level 2. to provide flexibility in timing its borrowing transactions and to meet working capital needs. 4 JANUARY 11. 2013 CREDIT ANALYSIS: IBRD (WORLD BANK) . minimally changed from 60% the previous fiscal year (which was the highest level since the 2 The IBRD may exceed 150%. As of June 30. The statutory lending limit is defined by the IBRD charter. Historically. 2012 the Bank’s total exposure to borrowing countries amounted to 59% of this limit. Capital Adequacy The steady expansion of IBRD’s capital resources over the years. which is $1 billion higher than for FY2012. means that the Bank has sufficient capital to cope with its above-average business risk. The prudential minimum for FY2013 is $22 billion. The strategy was executed by entering into interest rate swaps with a 10-year ladder repricing profile to extend the duration of equity from three months to roughly five years. Liquidity Position Historically Exceeds Strong Policy Requirements The goal of IBRD’s liquidity management is to ensure cash flows are available to meet all of the Bank’s financial commitments. liquid assets must equal at least the highest consecutive six months of anticipated debt service plus one-half of the anticipated net loan disbursements over the coming fiscal year (if positive).

The fall over the past three years was primarily due to increased lending. with this ratio posting only minimal increases since 2010.6% in 2008. Conversely. the Bank started scaling back the significant increase in operations. established safety net programs for the vulnerable. While some capital adequacy ratios deteriorated. ensured delivery of essential services and infrastructure. 2013 CREDIT ANALYSIS: IBRD (WORLD BANK) . with borrowings through debt issuance accounting for about 62% of subscribed capital. and 34. but remains moderate. as a result of the capital increase. Equity-to-Loans Ratio Falls to the Top of the Target Range The Bank also uses the equity-to-loans ratio (ETL) as one of its primary measures of risk-bearing capacity. and FY2010. respectively. In FY2012 it fell for the third year in a row. Despite this.1 billion will be paid in). to ensure that its capital adequacy supports continued growth in outstanding loans. Strong Capital Position Allowed Aggressive Response to the Global Crisis… As a result of its large capital base. Slovenia. the ratio had climbed steadily from 29.4% in 2004 to 37. IBRD Scores Well on Our Risk Asset Coverage Ratio Moody’s believes that reference to a more focused measure—the risk asset coverage ratio—may provide further value in assessing the strength of the IBRD’s capital base. which offset some of the credit rating downgrades of euro area members (Italy. it was not significant.3%. and restored confidence in financial markets. the Bank has 5 JANUARY 11. This figure continues to grow even after reaching a historical high in FY2011. the Bank’s usable capital (hard-currency paid-in capital plus reserves) plus the callable capital pledged by Aaa/Aa-rated member countries equaled 354% of what Moody’s regards as its high risk assets (i. and there was no stress on its financial strength or the Aaa rating. In those same years. reserves and surplus. the IBRD was able to aggressively respond to the global crisis to help mitigate the negative impact on developing countries. Since the crisis has eased IBRD’s increased borrowing needs have eased as well. FY2009.0%. well above the target. respectively. Before the Bank’s response to the global crisis. to 27. 6. The ETL ratio allows the Bank to monitor the adequacy of its risk-bearing capacity in relation to its predominant risk asset. respectively (following a 5-year period of declining oustandings). the Bank enhanced its financial capacity by increasing the capital base through a capital increase totaling $86.4%. from 28.3% in FY2008.0% (net of relevant accumulated provisions and deferred loan income in the fiscal year). and Spain).0% although gross loans outstanding increased by 2. In FY2012 new loan commitments decreased by 23. New loan commitments increased by 5.7%. The Bank’s initiatives were tailored to the specific circumstances of the borrowing country but in general helped to create jobs.6%. 144. The 10 percentage point increase in this ratio in both FY2010 and FY2009 (FY2008=40%) was to support higher lending needs to respond to the global crisis. credit rating upgrades lowered the amount of loans qualifying as risky.e.4% in FY2011 and FY2010.9%.SOVEREIGN & SUPRANATIONAL first half of the 1990’s). loans outstanding to countries that Moody’s considers to be less than investment grade). The Bank’s leverage has increased.. At fiscal year-end 2012. In addition.6% and 29. gross loans outstanding increased by 1. The ratio is now at the top end of the 23-27% target risk coverage range. As the global crisis eased. although the most recent fiscal year also experienced a decrease in usable equity. and 13.2 billion (of which $5. …with No Adverse Impact on Financial Health The IBRD performed the above-detailed response by deploying its existing capital. the most notable of which was Indonesia’s upgrade to Baa3.

6 JANUARY 11. The single-borrower exposure limit for FY2012 was $17. Asset Quality Total assets at the end of FY2012 amounted to $338. no country would be required to pay more than its total callable subscription. As of June 30. introduced premiums for longer maturity loans3. The Bank has never made a capital call and is highly unlikely to need to resort to such an action in the future. Should one or more of the member countries fail to meet this obligation. In FY2003 the IBRD instituted a policy whereby it could continue to lend to a country that had reached its concentration limit. The United States has in place legislation (including the Bretton Woods Agreements Act) that allows the Secretary of Treasury to pay up to $7.5 billion for India and $16. the fulfillment of which is independent of the action of other shareholders. and worked with relevant member countries to convert existing but not fully usable capital into fully-usable paid-in capital. The callable capital is an unconditional and full faith obligation of each member country. The IBRD limits its exposure to individual borrowers based on its risk-bearing capacity.8 billion in callable capital pledged to the IBRD without any requirement of further congressional action.7% of that total.5 billion for the other largest borrowing countries deemed to be the most creditworthy by the IBRD. China was the only country with which the Bank had such an arrangement.7 billion of the $31. the IBRD increased the contractual interest spread for new loans by 20 basis points to 50 basis points. reserves and unallocated surplus ($23 billion at end-FY2012). During FY2011. the Bank introduced a new loan pricing structure by restoring the average maturity limits for new loans and guarantees to the pre-2008 level of 12 years and allowing borrowing members an option to extend the average loan maturity from 12 years to 18 years by paying an annual maturity premium of 10 to 20 basis points.SOVEREIGN & SUPRANATIONAL increased pricing. and since it was below the limit the agreement had not been activated. with net loans outstanding representing 39. About 62% of the Bank’s callable capital represents the obligations of Aaa/Aa-rated shareholders. There also is an equitable access limit of 10% of IBRD’s subscribed capital. provided arrangements were made so that IBRD’s net exposure to the borrower would not increase. the Board reviews and approves this figure every year and has left it unchanged for FY2013. 2012. successive calls on the other members would be made until the full amounts needed were obtained. 2013 CREDIT ANALYSIS: IBRD (WORLD BANK) . Members’ Callable Capital Complements IBRD’s Own Resources If the Bank were unable to service its own debt—an event Moody’s considers as being extremely remote as reflected in its Aaa rating—it has the option of making capital calls on all member countries in proportion to their subscribed shares. 3 In early FY2010.2 billion. The overall country limit for the largest and most creditworthy borrowing countries is the lower of the single-borrower limit and the equitable access limit. However.

7 JANUARY 11.2 Argentina 2.2 5.5 5.3 10. 2013 CREDIT ANALYSIS: IBRD (WORLD BANK) .5 Romania 68. interest.8 10.1 12.6 India 7. increasing borrowings from capital markets and conceivably also from member governments or their central banks.7 11.2 7. As a result of all these factors.0 Mexico 8.2 Turkey 8.2 82. and were further increased with the addition of the $390 million allocation from the FY2012 net income.9 7. the Bank does not seek to maximize profits. there is a degree of concentration risk in the portfolio.3 90.3 billion. This amounts to less a fifth of the $3.9 7.4 7.0 12. …and More-than-Adequately Covered The loans in nonaccrual status are amply covered by accumulated loan loss provisions of $1.7 Romania 68.6 13. The Bank does not reschedule its loans.6 7.2 10.8 Indonesia 5.3 3.1 2. bn. bn.9 12.4 3. It has never written off a loan and continues to seek recovery on all arrears.8 China 9. resulting in an upward trend in general reserves in recent years. In keeping with its mission as a development organization.5 Brazil 6.4 Poland 3. and consequently shapes its financial policies to reduce risk while meeting its minimum profitability requirements.6 68.6 5. change in the composition of principal borrowers is a slow process.2 11. In order to minimize the risk that future large and protracted nonaccruals might disrupt normal lending operations.6 93.2 Poland 4.4 Turkey 9.4 Total 13. general reserves total $26.SOVEREIGN & SUPRANATIONAL FIGURE 1 IBRD Top Ten Borrowers Ranked By Share Of Total Loans Outstanding FY 2010 Country US$.3 8.1 4.5 9. Thus.3 Indonesia 6. Zimbabwe has been the only country with loans in nonaccrual status.7 India 8. and over that time the top ten borrowers have consistently accounted for approximately two-thirds of all loans outstanding.7 10.5 10.5 billion in nonaccrual loans recorded in FY2005.3% of total gross loan outstanding. Moody’s considers a resort to callable capital to be highly unlikely. Problem Loans Remain Miniscule… Since FY2008 when Cote D’Ivoire and Liberia cleared all of their overdue principal.1 9.7 billion. the Bank also has the options of reducing lending activity.8 3.6 7.4 8.9 Brazil 6. the IBRD uses an internal stress test of the equity-to-loans ratio to monitor and to evaluate its risk-bearing and financial capacities.8 10.5 4. (%) China Brazil India Mexico Turkey Indonesia Colombia Argentina Poland Ukraine Total 12. Loans in nonaccrual status (overdue by 180+ days) amount to approximately $462 million or 0.0 9.5 5.9 11.3 5.6 3.9 Total 13. Seven of the top ten borrowers in FY2012 were among the top ten a decade earlier. aside from the portfolio of liquid assets.8 Mexico 9.1 Argentina 2.0 Colombia 4. and charges due to IBRD.6 9. Furthermore.4 10.4 As is suggested by the table above.7 China 9.6 5. (%) Country FY 2011 US$. bn. In the event of a major increase in nonaccruals.6 Colombia 4. (%) Country FY 2012 US$.

there was a $189 provisioning charge compared to a $45 million release of provisions during the previous fiscal year. In FY2012. In turn. IBRD still reports its loan portfolio at amortized cost. the Bank reports changes in fair value resulting from fluctuations in interest rates or the Bank’s credit spreads as net unrealized gains or losses which is reflected in net income. Operating income has been positive every year since Moody’s first rated the Bank in 1993 and averaged approximately $1. 8 JANUARY 11. Growth in operating income will be supported by robust loan volume and pricing. the Bank recorded as an expense $650 million of transfers from FY2011 net income approved by the Board of Governors. However.264 million during the FY2006-12 period. income from the LTIP was lower 5. as loan income increased mildly4 while borrowing costs continued to fall. the IBRD reports all instruments in the investments. Over the medium term. However. a return to loss after the previous fiscal year’s net income of $930 million. In December 2010. for developmentmandated institutions our primary consideration of profitability is not the magnitude. since the instruments in these portfolios are held to maturity. and the equity duration extension that will reduce the sensitivity of the Bank’s operating income to changes in short-term market interest rates (discussed in more detail in the Assets/Liability Management and Liquidity section above).825 billion.SOVEREIGN & SUPRANATIONAL Profitability The IBRD’s profitability has been low relative to historical averages. FY2012 Operating Income Results… Operating income fell to $783 million in FY2012 from $1. the Bank announced that it would once again participate in the IDA replenishment. the outlook for the Bank’s profits is fundamentally positive. and asset/liability management portfolios as well as loans with embedded derivatives at fair value. Focus of Our Analysis is on Operating Income Rather than Net Income Starting in FY2009. rather. More significantly. …Support Build-Up of Reserves and Contribution to IDA Out of FY2012 net income. borrowings. The Bank reported a net loss of $676 million in FY2012 (after also taking into account the effects of Board of Governors approved transfers). As such. For the IDA16 Replenishment (2011-2014) the IBRD has promised $1. 2013 CREDIT ANALYSIS: IBRD (WORLD BANK) . the Bank allocated $390 million toward increasing the general reserve in order to increase its risk-bearing capacity. to help the 79 poorest countries in the world.023 million in FY2011. the Bank’s build-up of reserves is expected to support earnings by growing the contribution of free funds to overall returns. that operating results do not contribute to the erosion of the capital base (via large and protracted losses). which is low compared to the historical average. subject to adequacy of reserve retention. Moody’s considers operating income to be a more relevant measure of the Bank’s financial health in that it better reflects underlying trends in the Bank’s core operations. and administrative expenses rose. Due to lower returns from the equity portfolio. Contributing to the results was higher net interest income. The IDA received $520 million from unallocated net income and the Trust Fund 4 5 A result of the new loan pricing terms approved in FY2010 and an increase in loan volume. creating an asymmetry that affects variations in net income.

2013 CREDIT ANALYSIS: IBRD (WORLD BANK) . from surplus.SOVEREIGN & SUPRANATIONAL for Gaza and West Bank and the South Sudan Transition Trust Fund received $55 million and $75 million. Rating History Issuer Rating Long-term Short-term Senior Unsecured Outlook Date Rating Assigned Outlook Assigned Rating Assigned Rating Assigned --Aaa -- P-1 ---- ---Aaa -Stable --- Aug-10 March-97 December-94 March-93 9 JANUARY 11. respectively.

990 23.910 7.273 11.326 758 65 25.960 121.288 37.685 205.103 1.296 487 100.976 118.470 3.402 96.008 1.970 338.382 274.) ASSETS Total Cash o/w Unrestricted Cash Investments Derivative Assets Gross Loans Less Loans Approved But Not Yet Effective Less Undisbursed Balance of Effective Loans Equals Gross Loans Outstanding Accumulated Loan Loss Provision Deferred Loan Income Net Loans Outstanding Other Assets LIABILITIES Total Total Borrowings Derivative Liabilities Other Liabilities CAPITAL AND RESERVES Total Total Subscribed Capital Less Total Callable Capital (CC of Aaa/Aa members) [1] (CC of IG members) [2] (CC of members below IG) [3] Equals Paid-in Capital Less net amounts required to maintain value of currency holdings under capital subscriptions Less amounts subject to restrictions Equals Usable Paid-in Capital Plus Total Reserves.209 207.297 77.682 33.009 482 100.044 2.701 245.735 140.932 440 95.235 103.630 235.628 141.814 199.242 130.212 281.852 95.222 293 3.544 227 50 314.683 193.448 9.883 159.427 105.528 135.588 189.735 140.652 141. [3] Member countries viewed by Moody's as having below investment grade credit standing (below Baa).005 132.325 1.040 115.831 38.459 1.370 412 97.762 22.027 11.856 103.140 168.943 178.315 105.566 24.942 9.012 123.235 25.420 101.852 41.309 -488 944 11.883 -150 1.082 25.447 25.326 26.896 -240 1.677 20.894 19.460 9.834 37. 2013 CREDIT ANALYSIS: IBRD (WORLD BANK) .483 39.211 2.139 11.732 182.632 409 103.451 111.401 3.264 43 3.339 144.241 13.125 -236 2.191 5.883 2006 2007 2008 2009 2010 2011 2012 [1] Member countries viewed by Moody's as having credit standing of Aaa/Aa.720 36.642 281.387 448 311 222.739 32.922 104.492 39.288 37.442 40.145 9.523 338.209 3.226 11.232 38.383 110.548 189.835 74.270 172 -2.678 233.833 137.372 49.615 6.598 144.754 24.154 191.742 4.299 212.549 440 130.811 32.177 505 26.864 275.491 36.436 133.308 26.778 120.065 156.587 257 -1.201 11.805 1.433 7.507 145.SOVEREIGN & SUPRANATIONAL Annual Statistics IBRD (World Bank) 2005 ASSETS.420 3.993 11.951 293 1.848 9.859 293 2.430 45.581 35.054 81.690 426 134.751 149.900 28.104 87.733 85.037 189.574 128.274 -853 2.948 11.027 11.796 42.355 22.553 446 118.380 41.801 178.418 183.311 31. 10 JANUARY 11.397 99.277 25.311 890 122 25.599 33.381 175.558 29.670 293 3.261 189.332 10.429 8.486 41.948 293 817 36.466 160.315 105.235 103.351 293 -26 40.008 23.670 293 -239 37.145 314.759 75.657 4.803 1.178 -58 2.312 32.711 196.107 275.242 37.420 27.887 360 3.672 78.483 36. LIABILITIES AND CAPITAL (US$ Mil.288 37.221 7.577 110.718 178.806 5.918 178.004 2.642 9.796 189. unallocated net income and accumulated loan loss provision o/w General Reserve o/w Special Reserve o/w Accumulated Net Income -.212 233. CAPITAL AND RESERVES 29.032 -102 2.317 222.486 40.462 2.483 137.877 5.401 11.835 29.509 9.050 1.801 178.330 595 -1.443 9.889 138.912 293 -1.779 26.192 207.796 141.268 7.Unallocated Equals Usable Equity Surplus Other TOTAL LIABILITIES.310 -862 1.835 1.823 183.474 189.377 12.213 102.104 4.178 5.962 38.874 97. [2] Member countries viewed by Moody's as having investment grade credit standing (Baa or above).718 178.012 118.698 1.823 21.165 212.900 765 41 23.211 28.763 87.650 0 2.394 192.731 7.857 301.245 10.503 32.493 145.837 11. incl.544 136.567 105.822 23.

942 95 1.987 3.687 -1.495 3.511 3.389 7.320 -642 2.023 -513 420 930 4.053 4.354 1.540 3.519 -32 168 1 800 -839 -1.271 -740 -40 1.740 -650 -3.497 5.SOVEREIGN & SUPRANATIONAL IBRD (World Bank) 2005 2006 2007 2008 2009 2010 2011 2012 INCOME STATEMENT SUMMARY (US$ Mil.733 3.348 3.519 4.465 2.189 6.155 4.687 1.391 76 1.585 2.059 -724 173 0 1.631 189 133 1 783 -650 -809 -676 11 JANUARY 11.021 -502 173 4 1.652 1.835 3.235 4.017 3.084 71 627 271 3.564 -45 147 1 1.066 -405 171 2 1.664 75 1.012 5.206 2.491 5.107 264 4.864 4.592 4.934 83 1.449 21 367 1.750 -1.244 284 197 1 572 -738 3.037 2.863 5.739 2.479 -2.652 -1.082 -684 176 1 2.572 13 219 1.789 46 603 599 4.427 92 1.882 105 1.458 33 367 1.037 3.377 2.406 1.) Total Gross Income Income from Loans Interest Commitment Fees Investment Income Other Total Gross Expenses Borrowing Expenses Interest on Borrowings Other borrowing expenses Administrative Expenses Provision for Loan Losses Contribution to Special Programs Other Net Operating Income Plus Board of Governors-approved transfers Plus net unrealized gains (losses) on non-trading portfolio Equals Net Income 5. 2013 CREDIT ANALYSIS: IBRD (WORLD BANK) .750 1.491 2.353 4.470 2.467 5.114 4.585 3.791 73 1.606 1.426 71 1.038 -1.281 264 5.066 300 4.659 -957 -842 -140 6.389 2.280 3.077 4.

3 29.3 26.4 3.7 2.5 [1] Risk assets defined as loans to countries considered by Moody's to be below investment grade.7 1.0 269.8 32.1 27.5 0.8 5.7 3.3 0.2 25.6 245.SOVEREIGN & SUPRANATIONAL IBRD (World Bank) 2005 2006 2007 2008 2009 2010 2011 2012 FINANCIAL RATIOS Performance Statistics (%) Return on Total Assets (operating income) Return on Earning Assets Return on Equity Return on Usable Equity Interest on Loans/Loans Outstanding Interest Coverage Ratio (x) Capital Adequacy Ratios (%) Usable Equity as % Risk Assets [1] Usable Equity + CC of Aaa/Aa Members/Risk Assets [1] Usable Equity + CC of IG Members/Risk Assets [1] Liquidity Ratios (%) Liquid Assets (less restricted cash)/Total Assets Liquid Assets (less restricted cash)/Borrowings Liquid Assets (less restricted cash) as % of Principal Payments due next five years Total Liquid Assets/Undisbursed Effective Loans Maturity of Outstanding Borrowings (% of total) One Year Two to Five More than Five Reserves to Loans Ratio (%) Total Reserves/Loans Outstanding Loans To Usable Equity (X) Loans Outstanding/Usable Equity Lending Limitation (%) [2] Loans and Callable Guarantees Outstanding/Subscribed Capital and Reserves 47.3 68.8 1.2 304.3 4.4 36.9 61.8 1.9 1.8 46.4 0.8 11.6 16.5 41.4 40.6 2.0 89.4 227.9 40.9 29.3 79.8 22.9 61.1 31.7 22.1 2.6 4.9 36.2 295.1 23.9 43.6 40.9 4.6 26.3 0.0 44.4 1.0 49.2 66.4 77.0 1.8 294.6 0. [2] World Bank charter limits commitments on loans and guarantees to 100% of subscribed capital and reserves.0 3.6 0.2 0.1 28.0 75.6 51.0 2.2 102.2 3.5 1.3 29.6 1.6 331.3 444.5 41.4 1.6 29.1 25.0 305.1 26.5 95.4 28.1 26.0 2.8 15.2 26.8 5.6 354.6 2.4 33.2 1.8 3.4 47.6 1.5 116.8 46.8 6.2 0.9 11.8 39.9 1.3 65.8 19.3 3.3 10.9 1.4 88.3 42.1 243.3 4.3 12.0 25.1 15.0 43.0 15.8 149.5 3. 12 JANUARY 11.2 43.9 53.4 35.6 2.4 353.4 1.7 50.5 62.0 60.4 98.7 1.0 59.4 13.0 29.9 0.0 2.6 3.0 1.6 2.4 0.3 221. 2013 CREDIT ANALYSIS: IBRD (WORLD BANK) .0 28.6 236.3 36.9 1.5 4.5 2.2 59.4 1.2 0.0 45.1 5.9 12.2 11.5 285.0 55.4 281.1 20.

33 4.00 33.069 82.84 4.019 205.46 2.404 6.069 5.85 100.966 5.72 4.116 1.394 2.95 2. 2013 CREDIT ANALYSIS: IBRD (WORLD BANK) .60 4.890 8.359 6.12 4.222 616 552 571 437 334 392 375 335 335 5.SOVEREIGN & SUPRANATIONAL Capital Subscriptions and Voting Power (US$ Mil.21 4.331 8.00 13 JANUARY 11.805 18.63 2.51 9.51 2.29 2.33 3.83 2.10 2.63 3.101 5.) (as of June 30.51 45. 2012) Par Value of Shares Per Cent of Total Total Paid-in Callable Voting Power Per Cent of Total United States Japan Germany France United Kingdom China.63 42.070 5.72 100.890 7.51 2.12 3.958 9.97 2.134 12.736 9.404 88.098 5. People's Republic Russian Federation Canada India Italy Saudi Arabia Others Total 16.404 5.320 6.921 19.418 31.723 5.976 15.339 8.946 8.63 9.664 5.885 192.

14 JANUARY 11. Related Websites » » IBRD (WB) International Finance Corporation MOODY’S has provided links or references to third party World Wide Websites or URLs (“Links or References”) solely for your convenience in locating related information and services. or the products or services provided by any third party. Accordingly. The websites reached through these Links or References have not necessarily been reviewed by MOODY’S. any website. MOODY’S expressly disclaims any responsibility or liability for the content. Note that these references are current as of the date of publication of this report and that more recent reports may be available. click on the entry above. November 2012 (146849) To access any of these reports. the accuracy of the information.SOVEREIGN & SUPRANATIONAL Moody’s Related Research Credit Opinions: » » IBRD (WB) International Finance Corporation Analysis: » International Finance Corporation. 2013 CREDIT ANALYSIS: IBRD (WORLD BANK) . and/or quality of products or services provided by or advertised on any third party web site accessed via a Link or Reference. All research may not be available to all clients. and are maintained by a third party over which MOODY’S exercises no control. a Link or Reference does not imply an endorsement of any third party. Moreover.

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