Moody’s affirms CABEI’s international credit risk rating of “Aa3”, with a stable outlook

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Tegucigalpa, September 20, 2023.- Moody’s Investors Service affirmed on August 25 the long-term international risk rating of the Central American Bank for Economic Integration (CABEI) at “Aa3”; with a stable outlook. 

According to Moody’s official statement, the Bank's credit rating is based on CABEI’s robust intrinsic financial strength underpinned by stable leverage and strong asset performance, as well as ample market access and a solid liquidity coverage.

The rating agency also analyzed the credit profile of the Multilateral which incorporates the prudent risk management practices that allow the bank to handle the challenges posed by an exposure to relatively low-quality borrowers and the portfolio concentration inherent to its regional mandate. Continued support from regional and extra-regional members, including preferred creditor status and the timely payment of capital contributions, also contribute to CABEI’s favorable credit metrics.

In their official statement, Moody’s established that the stable rating outlook reflects the conservative liquidity management, adequate capital buffers and prudent lending that will continue to balance the risks associated with a regionally concentrated lending portfolio and a difficult operating environment. Additionally, Moody’s expects the bank's shareholders to continue to support CABEI’s role as a promoter of economic and social development in Central America, and its borrower members to continue to provide CABEI with preferred creditor treatment.

CABEI is the most important multilateral source of funds for the countries of the Central American Integration System. As of July 2023, there has been a total of US$1,945.7 million in approvals and  US$2,084.6  million in disbursements, mainly towards  the strategic axes of Development Human and Social Inclusion, Sustainable Competitiveness and Regional Integration.