Moody´s upgrades CABEI’s A2 risk rating

Moody 's Investors Service rating agency has placed the Central American Bank for Economic Integration's (CABEI) long-term "A2" credit rating on review for upgrade while its short-term "P-1" rating is unaffected by this action.

CABEI is the largest provider of multilateral resources in Central America with an long-term international credit rating of "A2" and a short-term rating of "P-1."

These favorable risk ratings are grounded in the strong financial and political support of CABEI's member countries, its preferred creditor status and its conservative funding and dividend reinvestment policies, as well as the recent expansion of equity capital, which has strengthened the Institution's financial foundations.

Furthermore, the rating agency noted that CABEI has been able to successfully access international financial markets as a result of its diversified base of funding sources, its solid equity position reflected in its capital adequacy indicators and its strong liquidity position, which are a product of the Bank's conservative policies.

According to the Moody's statement, the decision to upgrade CABEI's risk rating was based on the adoption of a new evaluation methodology for Multilateral Development Banks and Other Supranational Entities, which positions CABEI at a rating level between Aa1/Aa3; above its current A2 rating.

For his part, CABEI Executive President Dr. Nick Rischbieth stated that this decision to upgrade the Bank's risk rating confirms its financial soundness and firm commitment to contribute to the development of the Central American countries. Dr. Rischbieth also highlighted the Bank's role as the main channel for resources to the Central American region, and, in this regard, added that by 2014 CABEI expects to have made approvals amounting to US$1.45 billion.

The Bank's current risk ratings are: Standard & Poor's (A), Moody's (A2) and Fitch Ratings (A).

CABEI is the largest provider of financing for the development of the Central American region.