Japan Credit Rating Agency confirms CABEI's international credit rating at "AA"; with stable outlook
Tegucigalpa, March 29th, 2022.- The Japanese rating agency Japan Credit Rating Agency (JCR) confirmed the long-term international risk rating of the Central American Bank for Economic Integration (CABEI) at "AA"; with a stable outlook.
According to JCR's official statement, CABEI's credit rating is based on solid support from its member countries, its preferred creditor status, and its strong financial position. The latter is a consequence of CABEI's application of a set of conservative financial policies that result in a robust liquidity position, a very strong level of capital adequacy, stable profitability levels, and diversification of its funding sources. JCR also highlighted the decision of the Assembly of Governors to implement an action plan to increase, for the ninth time, the Bank's capital from US$7 billion to US$10 billion.
CABEI's Executive President, Dr. Dante Mossi, highlighted the important participation of Asian members in the Bank's shareholding structure, considering that, in aggregate, the Republic of China (Taiwan) and the Republic of Korea have subscribed around 20% of the Institution's authorized capital. In this regard, he emphasized the importance of continuing to incorporate member countries with high credit ratings in order to continue improving the Bank's rating and thus enhance the channeling of resources to the Central American region under stable and competitive financial conditions.
The announcement also notes CABEI's transcendental role as a multilateral financial institution of incalculable value to the Central American region, highlighting the support the Bank has provided to its partners' efforts to confront the global pandemic, through the implementation of the US$3.06 billion COVID-19 Emergency Support and Preparedness and Economic Reactivation Program, as well as the adverse effects of climate change, through the US$2.53 billion Central American Resilient Reconstruction Program.
In this regard, Dr. Dante Mossi indicated that since the beginning of the pandemic, CABEI has approved financing for more than US$3.5 billion and made new disbursements for more than US$1.7 billion for the prevention, detection and treatment of COVID-19 and the mitigation of its economic impact in the countries.
Finally, he indicated that the confirmation of the risk rating, the highest of any financial institution in Latin America, is very relevant in the current context of volatility in the financial markets and consolidates CABEI at a privileged level before an important investor base; noting that the Bank has issued recurrently in the Asian capital market, in markets such as Taiwan, Japan, Singapore, Hong Kong and Thailand with emphasis on ESG thematic bond placements making use of its frameworks for green and social bonds.