Standard & Poor's (S&P) confirms CABEI's international risk rating at "AA"; with a stable outlook

Tegucigalpa, September 21st, 2021.- According to the official statement issued by the rating agency, the confirmation of CABEI's "AA" rating is the result of the Institution's growing and diversified shareholder base and its commitment to strengthen and expand the Bank's role and scope in the region through its capitalization. In this regard, it highlighted the decision adopted by CABEI's Assembly of Governors to implement an action plan to increase, for the ninth time, the bank's capital to US$10 billion from US$7 billion; even though CABEI expects approximately US$488 million in new capital quotas as a result of the recently implemented eighth general capital increase.

S&P also noted that while there are pressures on member countries' credit ratings and increased financing commitments in the context of COVID-19, CABEI's careful capital management and impeccable track record of preferred creditor treatment by its member countries over the past 10 years support its "very strong" assessment of the Bank's financial strength and capitalization.

CABEI's Executive President, Dr. Dante Mossi, emphasized the importance of having consolidated the Bank's "AA" rating in all of its international ratings 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 mandate to implement an action plan to increase CABEI's capital to US$10 billion for the ninth time. Dr. Mossi called the ratification a historic achievement considering the economic stress that countries in the region are currently facing due to the COVID-19 pandemic.

The rating agency also highlighted CABEI's role in the midst of the COVID-19 pandemic as an important provider of multilateral financing for its members, highlighting the implementation of the Emergency COVID-19 Support and Preparedness and Economic Reactivation Program, which has US$3.06 billion in financial resources to support the regional countries' efforts against the health crisis, in addition to a robust structure of credit instruments available to its borrowers, such as the recently approved Development Policy Operations Program (OPD). S&P also highlighted CABEI's liquidity position, boosted by significant progress in strengthening its presence in the capital markets, having issued its largest bond for US$750 million in May 2020.

Dr. Mossi also stated that "this ratification of CABEI's rating by S&P reaffirms CABEI's commitment to continue prudently managing its resources and balance sheet while at the same time structuring financial solutions that allow it to respond to the region's specific needs in a timely and agile manner." "CABEI, which for several years has been the highest rated institution in Latin America, reflects the Central American region's potential and its resilience in the face of external shocks. We will continue to foster an increasing flow of external investments and resources to reverse the pandemic's effects, increase our resilience to climate change and promote the development and integration of our countries and their citizens," concluded Mossi.