CDBhas low leverage and solid capital at its disposal, which is appropriate given its concentration in the Caribbean region and the weak credit quality of its borrowing members.At the end of 2022, the leverage ratio increased to 1.57x from 1.4x in 2021 due to higher disbursements, butremains below theAa-rated median. Moody's expects the leverage ratio to drop again in 2023 and reach 1.18x by the end of 2024, below the policy limit of 1.65x, based on its expectation of loan repayments in the coming year.