By Caribbean News Global
BRIDGETOWN, Barbados – The Caribbean Development Bank (CDB/the Bank) announced Thursday that it is pleased with S&P Global Ratings November 27, 2024 Ratings Score Snapshop that affirmed its ‘AA+/Stable/A-1’ ratings.
“The stable outlook reflects the agency’s view that CDB will continue to uphold high capitalisation levels and manage its balance sheet prudently,” the bank said in a statement.
The S&P Global overview reads:
“Caribbean Development Bank (CDB) continues to play an important role in the Caribbean supporting borrowing members on sustainable growth initiatives. In 2023, CDB approved a total of $461.6 million from both its ordinary capital resources (OCR) and concessional window (special development fund; SDF) – of which $73.6 million took the form of grants – and disbursed a total of $405.4 million. Furthermore, CDB has a strong track record of supporting members during natural disasters and climate shocks through a suite of policy instruments, partnerships, and coordination across the broader multilateral sector.
“CDB has sustained a strong record of preferred creditor treatment (PCT) in its borrowing member countries and has strengthened its risk management functions. Although borrowing member countries remain exposed to hurricanes, they still make full and timely payments to CDB even following an event. We believe CDB has carefully managed its portfolio, balancing the use of regular and concessional resources and managing concentrations.
“Our view of CDB’s financial risk is based on its ample capital and liquidity buffers, which enable the bank to mitigate economic stress for its primary borrowing members. Its risk-adjusted capital (RAC) ratio, at 29.7 percent, based on June 30, 2024, financial data and using rating parameters as of November 2024, remained relatively stable compared with year-end 2023. Moreover, CDB’s eligible callable capital provides the bank with an additional buffer against unexpected deterioration in its RAC ratio after adjustments.”
The CDB noted that “the stable outlook from S&P Global Ratings reflects the bank’s capacity and confidence in its mission to support the development and sustainable growth of Caribbean economies, even amid global economic challenges and natural disasters.”
On Wednesday, December 4, 2024, the CDB announced the appointment of Daniel Best as its seventh president.
“This decision, [reached today] underscores the bank’s commitment to visionary leadership and sustainable development across the Caribbean region,” CDB said.
