Caribbean Development Bank returns to ‘stable’ outlook
-based on S&P review
The Caribbean Develop-ment Bank (CDB) has announced that Standard and Poor (S&P) has revised its outlook from “negative” to “stable” and has affirmed its “AA/A-1+” status on long and short-term foreign currency ratings.
In a press release, the CDB said it welcomed S&P’s review of its 2013 results. S&P made the announcement on Friday, May 16 stating that factors which contributed to the shift to “stable” include the abatement of external liquidity pressures among some of the Bank’s largest borrowers, high capital adequacy with a risk-adjusted capital ratio of 23% as of Dec. 31, 2013 to offset the significant embedded credit risk in its portfolio, the CDB’s “strong” business profile and its “very strong” financial profile, its role as a prominent lender in the Caribbean and ability to lend to sovereigns through the credit cycle, the demonstration of members support for the Bank’s mandate by granting a 38% increase of paid-in capital in 2010 and the strengthening of its risk management structures and monitoring over the past 18 months.