Standard & Poor's (S&P) improves CABEI's business profile and confirms its international risk rating of "AA”, with a stable outlook
Tegucigalpa, September 25, 2020.- The rating agency 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 perspective.
According to the official statement issued by the rating agency, the confirmation of CABEI's "AA" rating results from the growing and diversified shareholder base of the institution, as well as from its solid commitment to strengthen and expand its role and reach in the region. S&P highlighted the recent implementation of the Bank's VIII Authorized Capital Increase, which increased by US$2 billion and will generate substantial capital payments.
Likewise, the rating agency highlighted the incorporation of the Republic of Korea as an extra-regional partner at the end of 2019, as well as the impeccable record of preferential creditor granted by its member countries, as elements that support the improvement of CABEI's business profile from the "strong" category to the "very strong" category, according to its methodology for evaluating the Multilateral Development Bank.
For his part, CABEI's Executive President, Dr. Dante Mossi, emphasized the importance for the Bank of having consolidated during the present year the rank of "AA" in all its international ratings, maintaining it as the best risk in all Latin America.
Dr. Mossi also emphasized the irrefutable support of the Bank's partners, demonstrated through the implementation of the VIII Capital Increase, which represents a historic achievement, considering the economic stress that the countries of the region are facing under the COVID-19 pandemic. In that sense, he highlighted CABEI as the first and only Multilateral Development Bank that to date has managed to implement a capitalization process as a response to the current economic crisis related to the referred pandemic.
In that line, S&P highlighted the role of CABEI in the framework of the pandemic as the most important provider of multilateral financing for its members, highlighting the implementation of the Emergency Program of Support and Preparation to COVID-19 and Economic Reactivation that has US$2,360.1 million in financial resources to support the efforts of the countries of the region against the health crisis; in addition to the robust structure of available credit instruments, such as the recently approved Program of Operations of Development Policies (OPD).
Likewise, S&P qualified the administration of CABEI as robust given its proven track record of strategic management and its solid policy of asset and liability management. In this sense, the rating agency highlighted the improvement from "strong" to "very strong" in the evaluation of the Bank's capital adequacy and highlighted the liquidity levels of the Institution, as well as the strengthening of its presence in the international capital markets, evidenced by the largest bond placement in its history, for US$750.0 million in May 2020, despite the complex market conditions.
Finally, the Executive President indicated that this confirmation by S&P reaffirms its vision of a stronger integrated Central American region, which is evidenced by the value of the CABEI franchise, which, after its 60 years of history, has become the main driver of regional integration.