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S&P Upgrades CABEI to 'aa' and Affirms 'AA' Rating

In a significant development for the Central American Bank for Economic Integration (CABEI), the credit rating agency Standard & Poor's (S&P) has upgraded its Stand-Alone Credit Profile (SACP) from 'aa-' to 'aa'. This commendable move is attributed to CABEI's robust financial performance throughout the past year and reflects S&P's confidence in the institution's long-term stability, as it has also reaffirmed CABEI's long-term international rating at 'AA' with a stable outlook.

This rating upgrade can be traced back to several strategic initiatives implemented by CABEI. In the first half of 2025, the bank entered into Exposure Exchange Agreements (EEA) with two other Multilateral Development Banks. This strategic collaboration was aimed at minimizing loan concentration while optimizing the capital at hand. S&P noted that these measures have significantly bolstered CABEI's risk-adjusted capital (RAC) ratio and overall financial risk profile. Furthermore, CABEI recorded historic financial results by the end of the 2024 fiscal year, showcasing its ability to maintain a solid presence in diverse capital markets. The bank has successfully issued in 27 currencies across 26 markets globally, highlighting its expansive reach and financial health.

CABEI's Executive President, Gisela Sánchez, expressed her optimism regarding the rating upgrade, indicating that this positive action is a pivotal milestone. It marks the second positive rating adjustment within less than a year and demonstrates the tangible benefits of implementing CABEI's renewed institutional and financial strategy for 2025-2029. This strategy emphasizes various crucial aspects such as capitalization, management of the balance sheet, and high-impact financing initiatives aimed at fostering regional development.

In her statement, Sánchez emphasized, "The improvement in the Bank's financial risk profile marks a very significant milestone, as it represents the second positive rating action in less than a year and reinforces the positive outcomes of implementing our renewed 2025-2029 Institutional and Financial Strategy. It sets the course for continuing along the path of technical rigor while promoting constant optimization of our balance sheet to remain the leading development bank in the region."

S&P also underscores that the favorable outlook reflects its expectation of continued strong support from CABEI's member nations over the coming two years. This support includes timely capital contributions, enabling the bank to maintain its esteemed reputation as a preferred creditor. Furthermore, S&P anticipates CABEI will continue to exercise prudent management of its capital levels while also sustaining a robust position in high-quality liquid assets.

The upgrade of CABEI's SACP to 'aa' serves as a testament to the institution's resilience and adaptability in an ever-evolving financial landscape. It signals confidence in CABEI’s ability to contribute to economic integration and sustainable development within the region. As the financial institution gears up for the next phase in its operational strategy, stakeholders will be keenly observing how these measures translate into broader regional economic advancements.

In conclusion, CABEI's recent accolades from S&P further solidify its pivotal role in Central America's economic landscape. The bank's strategic vision, paired with the robust support from its member countries, presents an optimistic outlook for its future endeavors in fostering economic development throughout the region.