Standard & Poor's confirms the international risk rating of the Central American Bank for Economic Integration at "AA"; with a stable outlook
Tegucigalpa, September 15, 2022.- Standard & Poor's (S&P), confirmed the long-term international risk rating of the Central American Bank for Economic Integration (CABEI) at "AA"; with a stable outlook.
According to the official statement of the rating agency, the considerable level of callable capital from highly rated members, as well as robust support from its members, cushion the pressures on the Institution's equity position generated by the support that the Bank has provided to its member countries in the midst of the adverse economic effects of the COVID-19 pandemic.
The rating agency highlighted the support of the Bank's member countries, evidenced by the agreement of the founding countries to advance capital payments under the VIII Capital Increase, for approximately US$191.0 million, as well as the decision to analyze the IX Capital Increase during the next Board of Governors meeting to be held in Mexico, in September 2022. By implementing this increase, CABEI would be increasing its capital from US$7 billion to US$10 billion.
S&P also noted that the stable outlook reflects its expectations that during the next two (2) years, CABEI's member countries will continue to support the Institution through timely capital payments, as well as the impeccable track record of the preferential creditor treatment they have granted the institution. In addition, the rating agency expects CABEI to manage capital levels prudently while maintaining high quality liquid assets.
CABEI's Executive President, Dr. Dante Mossi, emphasized the importance for the Bank of having all of its international ratings in the "AA" range this year, maintaining it as the best risk in all of Latin America.
Dr. Mossi also highlighted the irrefutable support of the Bank's members, reflected in the implementation of the VIII Capital Increase and the recent agreement by the founding countries to advance their capital quotas under said increase, as well as to analyze increasing, for the ninth time, CABEI's capital up to US$10 billion.
The rating agency also highlighted CABEI's role as an important provider of multilateral financing for its members, highlighting the implementation of the Emergency Support and Preparedness Program for COVID-19 and Economic Reactivation, which has US$2.26 billion in financial resources to support the efforts of the countries of the region against the health crisis, as well as the recently approved Temporary Support Program for Rising Fuel Costs, with US$1 billion in available financial resources.
S&P also highlighted CABEI's liquidity position, enhanced by important advances in strengthening its presence in the capital markets, as well as its increased focus on the execution of environmental, social and governance (ESG) issues.
Finally, the Executive President indicated that this confirmation by S&P reaffirms his vision of a stronger integrated Central American region, which is evidenced by the value of the CABEI franchise, which, after more than 60 years of history, has become the main provider of resources for its member countries as well as the driving force behind regional integration.