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S&P affirms Caribbean Development Bank

S&P Global Ratings on May 4 affirmed 's long- andshort-term issuer credit ratings at AA and A-1+, respectively, with a stableoutlook.

The ratings, which pertain only to the bank's ordinarycapital resources, reflect its "strong business profile and extremelystrong financial profile," credit analyst Abril Canizares said.

Although the company benefits from $328 million in eligiblecallable capital from its higher-rated shareholders, the bank's own balancesheet capital adequacy is extremely strong, which is why the rating agency doesnot incorporate any uplift above the "aa" stand-alone credit profilein deriving the bank's long-term rating.

Caribbean Development Bank's extremely strong financialprofile reflects its strengthening capital adequacy, though this is partiallyoffset by its less diversified funding profile. The bank's risk-adjustedcapital ratio after adjustments increased to 29% in 2015 from 26% in theprevious year, S&P noted.

The stable outlook reflects the rating agency's view thatthe company will retain its high capital adequacy levels and sufficientliquidity, and that its sovereign borrowers will treat it as a preferred creditor.

S&P Ratings andGlobal Market Intelligence are owned by S&P Global Inc.