Mexico has been a non-regional CABEI member since 1992 with an authorized stake of USD306.25 million in the Bank's share capital and capital contributions of USD76.56 million, ranking as the third largest shareholder within the group of non-regional members with 5.03%.
The contribution that Mexico channels to the Central American region through CABEI is based on various financial cooperation instruments with Banco Nacional de Comercio Exterior S.N.C. (Bancomext) for a total amount of USD520.8 million. The relationship between the Bank and this country was solidified in 2008 with the launching of the Central American Social Housing Development Program. It falls under the framework of the Mesoamerican Integration and Development Project (formerly Plan Puebla Panamá). Since that date, the Mexican government has made resources available to develop a sustainable market for long-term housing finance in the Central American region that addresses the housing deficit and future needs in this area. Throughout the Program's existence, 59 disbursements have been made through 14 intermediary institutions. In total, 192.7% of the initial financing available has been channeled, benefiting a total of 8,032 low- income households, which can now enjoy a more dignified home.
Fitch Ratings Upgrades CABEI’s Rating to A+
The upgrade of CABEI’s rating reflects an improvement in the Institution’s business profile.
Tegucigalpa, September 8, 2017. Fitch Ratings has upgraded the long-term international credit rating of the Central American Bank for Economic Integration (CABEI), from 'A' to 'A+'; while also affirming its short-term rating at 'F1'. Both ratings were assigned a 'stable' outlook.
According to the statement issued by Fitch Ratings, the upgrade of CABEI’s credit rating to 'A+' results from an improvement in the Bank's business profile as an outcome of the amendments to its Constitutive Agreement; which, in the opinion of the Rating Agency, will boost its equity growth and the diversification of its loan portfolio.
Fitch Ratings indicated that the Bank's 'A+' rating reflects its intrinsic credit quality; most notably its high solvency level and strong liquidity. As such, the Rating Agency stated that CABEI’s solvency assessment is driven by its strong and stable capitalization, supported by its consistent capital generation and moderate loan portfolio growth.
Furthermore, Fitch Ratings highlighted CABEI’s reduced exposure to the private sector, its near elimination of impaired loans, the expectation of a gradual reduction in its loan portfolio concentration and its excellent access to the capital markets and other alternative sources of liquidity.
The rating agency also noted the consistency of the Bank's strategy and its sound corporate governance practices, stating that they ensure equal treatment to all the Central American Integration System’s (SICA) member countries.
CABEI’s Executive President, Dr. Nick Rischbieth, stated that Fitch Rating’s improvement of the Bank's rating is a result of the Board of Governors’ decision to modify the Constitutive Agreement and other related regulations, which came into effect on June 9, 2016; the results of which have had a positive impact on the Institution’s credit profile.
Furthermore, Dr. Rischbieth stated that the Bank has started the route to diversify its loan portfolio, as a key factor determined by rating agencies to improve the Institution’s credit rating.
In addition, Dr. Rischbieth highlighted the fact that CABEI is one of the Multilateral Banks whose risk rating has evolved more rapidly over the years, as reflected by the 5 rating upgrades it has achieved over the past 5 years, which have allowed the Institution to position itself as a bank with high credit quality, through one of the best ratings of financial institutions and countries in Latin America.
Finally, he emphasized that continuous credit rating improvements allow CABEI to consolidate its role as the financial arm of the Central American Integration System.
