Japan Credit Rating Agency Upgrades CABEI's Rating Outlook to Positive

Positive Outlook for CABEI

The Japan Credit Rating Agency (JCR) has officially upgraded the Central American Bank for Economic Integration's (CABEI) long-term international credit rating from "Stable" to "Positive," reaffirming its global rating at "AA." This positive change comes after the introduction of CABEI's new Five-Year Framework for 2025-2029, which integrates both Institutional and Financial Strategies aimed at strengthening the Bank's financial standing and credit capabilities.

JCR's report emphasizes the ample liquidity of CABEI, which stems from prudent financial management and a diversified funding base. These factors ensure that CABEI possesses the financial robustness needed to fulfill its strategic goals efficiently. Importantly, the agency pointed out the upcoming approval of a capital increase, which is expected to further enhance the Bank's credit risk rating by reflecting stronger support from its member countries.

Additionally, JCR acknowledged the favorable preferred creditor status CABEI enjoys from its member nations. This status allows CABEI to maintain a high-quality loan portfolio, which achieved unprecedented diversification in 2024. The rating agency also noted the expansion of CABEI's shareholder base. Initially comprising five founding member states, CABEI now engages 15 countries, including nations like Taiwan, Mexico, Argentina, Colombia, Spain, and recently, South Korea.

Gisela Sánchez, CABEI's Executive President, welcomed this positive evaluation from JCR—the first since 2019—stating it signals the successful direction taken by the Bank’s new management. She expressed confidence that focusing on technical accuracy and operational efficiency, combined with an updated financial strategy, will enhance CABEI's credit profile further. This assessment reinforces the institution's commitment towards financial stability and a thorough approach to balancing the use of resources.

JCR’s report also recognizes CABEI's critical role as a multilateral financial institution vital to the Central American region. It highlights CABEI as a leading financier among Multilateral Development Banks and acknowledges its substantial contributions to the region's economic and social development. Without a doubt, this upgraded outlook sets a promising path for CABEI as it continues to support important initiatives across Central America, further solidifying its role in economic integration and development.