Standard & Poor´s raised Central American Bank for Economic Integration (CABEI)

Standard & Poor´s Ratings Services raised CABEI´s long-term foreign currency rating to 'A' from 'A-', while also affirming its 'A-1' short-term foreign currency rating. The ratings outlook is stable.

According to Standard & Poor's, the upgrade of CABEI's long-term foreign currency rating reflects the Bank's strong capitalization, its shareholder support reflected on the expectancy that the first capital installments of the general capital increase approved in 2009 by CABEI's Board of Governors will be paid this year on time and in full by the founding member countries, and the prospect that the membership will broaden in 2013. As such, Standard & Poor's stated that the new paid-in capital and new member´s incorporation will bolster the Bank's capital base and increase its value to Central American borrowing members.

The Rating Agency also mentioned that the continued performance of CABEI's public sector portfolio also supports the ratings. Standard & Poor's also highlights CABEI´s strong liquidity position and its diversified funding strategy, which includes funds obtained from the global capital markets and credit facilities from more than 25 international banks and bilateral lenders.

CABEI´s Executive President, Dr. Nick Rischbieth, indicated that Standard & Poor´s upgrade on the Bank´s rating confirms the financial soundness of the Institution, and ratifies CABEI's franchise value and relevance to its shareholders as the main provider of financing to the region. Dr. Rischbieth also stressed the importance of the Board of Governors´ decision to ratify its support to the Institution by approving the increase in CABEI´s authorized capital, which is materialized through new paid-in capital contributions, while also allowing the incorporation of new extra-regional member countries.

Currently, CABEI´s credit ratings are: Standard & Poor´s A rating, Moody´s A2, Fitch Ratings A, and A+ by the rating agency Japan Credit Rating (JCR).

Standard & Poor´s is one of the main international risk rating agencies with headquarters in New York and offices in 23 countries.