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 Assigns a Positive Outlook to CABEI’s A+ Rating
The positive outlook reflects the Institution’s enhanced capital position.
Tegucigalpa, September 6, 2018. Fitch Ratings has changed the outlook on the Central American Bank for Economic Integration’s (CABEI’s) rating to “positive” from “stable” and affirmed its 'A+' long-term issuer rating.
According to the statement issued by Fitch Ratings, the positive outlook on CABEI’s 'A+' rating reflects its enhanced capital position as a result of the upcoming consolidation of its concessional window with its ordinary capital, the expected approval of the Institution’s 8th capital increase (second since 2012), its current capitalization by members like Panama and the Dominican Republic as well as upcoming capitalization processes via new members like the Republic of Korea.
The Rating Agency also noted its expectation of a gradual improvement in the Bank's asset quality as a result of increased loan portfolio diversification and highlighted CABEI’s robust profitability and improved risk management practices, evidenced by the absence of non-performing loans for the past two years; which also reflects the strength of Institution's Preferred Creditor Status.
For his part, CABEI’s Executive President, Dr. Nick Rischbieth, stated that CABEI's credit rating and its positive outlook are the result of the decisions taken by the Board of Governors to modify the Constitutive Agreement, which have had a positive impact on the Bank's business and financial profile in the short term. In this regard, the Executive President indicated that the amendments included the redefinition of the Central American region through the inclusion of Panama, the Dominican Republic and Belize, and that they have fostered the incorporation of new members and have allowed to promote a diversification process of the loan portfolio and further strengthen the institution's Preferred Creditor Status.
Dr. Nick Rischbieth also stressed the importance for CABEI of attracting a highly rated member such as the Republic of Korea, which has also had an immediate and positive impact on the Bank, strengthening its institutional governance and enhancing the benefits of the cooperation schemes signed between CABEI and Korean institutions in favor of its member countries.
Finally, he emphasized that continuous credit rating improvements allow CABEI to consolidate its role as the financial arm of the Central American Integration System.
