Moody’s affirms CABEI ratings at A1

Tegucigalpa, December 16, 2016.- Moody’s Investors Service affirmed the ‘A1’ long term and ‘P-1’ short-term issuer ratings of the Central American Bank for Economic Integration (CABEI). The outlook remains stable.

Likewise, Moody's de México affirmed the Aaa.mx in the National Scale Rating of Mexico.

The Rating Agency considers the Bank’s modification to its constitutive agreement as a key driver to the rating’s affirmation, which will allow the bank to further diversify its loan portfolio and expedite future capital increases. In turn, the Rating Agency highlights that these changes have led Panama and the Dominican Republic to increase their capital subscriptions, and that they will make the bank more attractive for new countriesto join, a development that could improve CABEI's weighted shareholder rating.

Furthermore, Moody’s highlighted that the improvements in the levels reported by key capital adequacy and liquidity indicators continue to support CABEI's high intrinsic financial strength.

On the other hand, Moody’s emphasized on CABEI’s low non-performing loans ratio (NPLs), which has presented a significant reduction from a historical peak in 2010.

CABEI’s Executive President, Dr. Nick Rischbieth stated that Moody’s affirmation 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; 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.