Fitch Upgrades CABEI's Default Ratings (IDR)

Tegucigalpa March 20, 2012.- Fitch Ratings Agency has upgraded CABEI´s Long-term Issuer Default Rating (IDR) to 'A' from 'A-'. At the same time, Fitch has upgraded the Short-term IDR to ‘F1' from ‘F2'. The Rating Outlook is Stable.

According to Fitch, the upgrade of CABEI's IDRs reflects progress on implementing the Bank's strategy to focus its lending primarily to public sector projects and recently enhanced credit risk policies. The upgrade also reflects CABEI's stronger Asset and Liability Management (ALM) with properly scattered debt maturities.

The Rating Agency also emphasizes CABEI's funding structure which has evolved in recent years, thanks to its active participation in international capital markets of Europe, Asia and America. According to Fitch, this strategy has allowed the Bank to extend the maturity profile of its funding, with bond issuances accounting for more than 55% of its total funding.

Fitch also highlights CABEI´s ample liquidity position and sound capitalization by sub-regional multilateral development standards.

CABEI´s Executive President Dr. Nick Rischbieth indicated that Fitch´s rating upgrade confirms the financial soundness of the institution, which maintains a strong commitment to contribute to the development of the Central American countries. Dr. Rischbieth also stressed the importance of the Bank´s back-to-basics strategy which involves a renewed focus on public sector development as part of the 2010-2014 institutional strategy and CABEI´s prudential Asset and Liability Management practices and policies.

Finally, Dr. Rischbieth emphasized CABEI´s importance as the leading provider of financial solutions for the development of the region, while also adding that in 2011, CABEI channeled resources to the Central American region reaching a loan portfolio of US$5,166 million, further enhancing the Bank´s relevance and franchise value.
Today, CABEI´s credit ratings are: Fitch Ratings A (stable outlook), Standard & Poor´s A- (stable outlook), Moody´s A2 (positive outlook), and A+ (stable outlook) by Japan Credit Rating (JCR).