CABEI’s Rating Outlook Revised to Positive by Fitch Ratings

Tegucigalpa. Honduras, September 14, 2016 - Fitch Ratings revised the Central American Bank of Economic Integration’s rating outlook from stable to positive, while also affirming the Bank’s long-term and short-term foreign currency ratings at 'A' and 'F1' respectively.

According to the press release issued by Fitch Ratings, the positive outlook reflects CABEI’s intrinsic credit quality, most notably its high level of solvency and its strong liquidity.

The Rating Agency considers that the Bank’s solvency assessment is driven by its strong and stable capital position which is underpinned by conservative capitalization policies, moderate exposure growth, and sustained capital contributions from member countries.

Furthermore, Fitch Ratings highlighted CABEI’s reduced exposure to the private sector, its near elimination of impaired loans, the Institution’s maintenance of a solid reserve coverage and the expectation of a gradual reduction in its loan portfolio concentration.

Moreover, according to Fitch Ratings, the recent amendments to CABEI’s Constitutive Agreement facilitate risk diversification and sustain capital growth, as well as strengthen the Bank’s preferred creditor status and improve governance.

CABEI’s Executive President, Dr. Nick Rischbieth stated that Fitch Rating’s improvement of the Bank’s rating outlook 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; and will have 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.

Dr. Rischbieth also emphasized that continuous improvements on CABEI’s credit rating strengthen the Institution’s role as the financial arm of the Central American Integration System.