The Caribbean Development Bank is pleased to announce that Moody’s Ratings has affirmed its Aa1 long term issuer and foreign-currency senior unsecured bond ratings with a stable outlook. This reflects the Bank’s commitment to financial stability, prudent risk management, and continued efforts to optimise its balance sheet.
Moody’s rating affirmation acknowledges CDB’s strong capital adequacy, robust liquidity metrics, and solid shareholder support, which are cornerstones of the Bank’s financial strength.
In their announcement, Moody’s highlighted the following key factors supporting the Bank’s credit profile First. Its Balance Sheet Optimisation Initiatives.
The affirmation reflects CDB’s recent successful implementation of a $450 million Exposure Exchange Agreement (EEA) with the Central American Bank for Economic Integration (CABEI), which will significantly reduce portfolio concentration and diversify credit risks.
Also, the forthcoming $200-million Portfolio Credit Guarantee (PCG) from the Government of Canada will further enhance CDB’s ability to transfer credit risk, reduce risk-weighted assets, and create additional lending headroom for its Borrowing Member Countries.
The CDB rating was also boosted by its Enhanced Liquidity Position, Strong Shareholder Support and Efforts to Strengthen Risk Management Framework.
The full Rating Action from Moody’s can be found here: Moody’s Ratings affirms the Aa1 ratings of the CDB, maintains stable outlook.
