Yesterday, Fitch Ratings affirmed the Caribbean Development Bank’s (CDB) Long-Term Issuer Default Rating (IDR) at ‘AA+’ with a Stable Outlook. The report highlights the Bank’s high governance standards, ‘excellent’ capitalisation, high level of solvency (assessed at ‘aa+’), and very high liquidity (assessed at ‘aaa’).

In addition to confidence in the Bank’s administration and governance, key driving factors behind the rating include:

• Excellent Capitalisation, now broadly in line with pre-pandemic levels;
• Very High Liquidity, with an expectation that the Bank will continue to operate with large and high-quality liquidity buffers;
• Resilient Loan Performance, exceeding Fitch’s previous expectations during the pandemic;
• Risk Management Framework Enhancements, including a roadmap for reforms spanning capital adequacy, concentration, market, liquidity and operational risks through to 2025.

The ‘AA+’ rating from Fitch Ratings reinforces the confidence in the Bank’s financial strength and governance. It comes at a critical time as the region grapples with economic recovery and resilience challenges. The Bank will continue leveraging its financial strength to mobilize resources to accelerate our Borrowing Member Countries’ progress towards achieving the Sustainable Development Goals.

The full rating action commentary from Fitch Ratings can be found here:
Fitch Affirms Caribbean Development Bank at 'AA+'; Outlook Stable