Moody's on Aug. 2 assigned the Caribbean Development Bank an issuer rating of Aa1, with a stable outlook.
The bank's senior unsecured bond rating was also affirmed at Aa1.
The CDB's new issuer rating reflects its very high intrinsic financial strength and member support. Moody's cited a 150% capital increase in 2010, and noted the bank's capital has been rising over the past six years. The bank's total assets have also steadily increased, up to $1.599 billion in 2016, from $1.269 billion in 2010. The bank's preferred creditor status also contributes to a strong repayment performance, which supports its asset quality.
Meanwhile, as similarly reflected in the 2010 capital increase, support to the bank from borrowing and non-borrowing members remains strong. The bank also benefits from its callable capital, which is sufficient to repay all outstanding debt.
Additionally, the rating also reflects the weak average credit profile of the bank's borrowers and their concentration in one region.
The stable outlook reflects Moody's belief that the bank's improved risk management framework will support continued compliance with internal risk management policies.