CDB’s Notes Receive “AAA” Rating from S&P
Wednesday July 13 2011 | 07:38 AM

In making this announcement S&P also indicated that the 'AAA' long-term and 'A-1+' short-term ratings on CDB remain unchanged and that the outlook on the ratings remains stable. 

“At the bank's May 2010 annual meeting, its board of governors approved a US$217 million increase (nearly 38%) in CDB's paid-in capital, to be paid in six equal installments beginning this year. This was the first general capital increase since 1990 and, in our view, constitutes a show of strong shareholder support. Total equity (adjusted for callable capital and subscriptions not yet matured) was US$607 million at year-end 2010. This was 61% of outstanding loans, which totaled US$994 million,” S&P said. 

S&P also noted other positives including the fact that the performance of CDB's loan portfolio has historically been strong and that while some loans have been rescheduled the bank has reportedly never written off a loan.

“Its impaired loans totaled US$11 million, or 1.07% of outstanding loans, and were concentrated in the private sector as of Dec. 31, 2010. CDB's liquidity, although lower than that of some multilateral development financial institutions, is consistent with the 'AAA' rating.”