Strategic Moves Earn CABEI Elite 'AA+' Credit Rating from JCR

TEGUCIGALPA, Honduras – January 09, 2026 – The Central American Bank for Economic Integration (CABEI) has started the year with a significant vote of confidence from the international financial community. Japan Credit Rating Agency (JCR) announced it has upgraded the multilateral development bank's long-term credit rating from 'AA' to 'AA+', maintaining a stable outlook. The upgrade serves as powerful external validation of a series of strategic financial and institutional reforms executed throughout 2025.

This enhancement places CABEI in an elite tier of global financial institutions and directly reflects the successful early implementation of its ambitious 2025-2029 Institutional and Financial Strategy. The move is expected to bolster the bank's capacity to attract low-cost capital from global markets, a benefit it intends to pass directly to its member countries to fuel sustainable growth and regional integration.

A Year of Strategic Financial Maneuvering

The upgrade was not a sudden development but the culmination of a disciplined and proactive year of financial management. In its official statement, JCR highlighted several key achievements that underpinned its decision, most notably CABEI's innovative use of Exposure Exchange Agreements (EEAs).

Throughout 2025, the bank successfully executed three landmark EEAs totaling US$1.6 billion. These agreements involved exchanging portions of its sovereign loan portfolios with other leading regional development banks: the Development Bank of Latin America and the Caribbean (CAF) and the Caribbean Development Bank (CDB) in May, followed by the Financial Fund for the Development of the River Plate Basin (FONPLATA) in November.

This strategic de-risking had a direct and measurable impact on the bank's financial profile. According to detailed analysis, the EEAs were instrumental in reducing the concentration of loans to CABEI's five founding member countries from 73% down to 63%. By diversifying its credit exposure, CABEI has significantly enhanced its resilience against potential economic shocks in any single country, a factor heavily weighted by credit rating agencies.

Beyond risk management, CABEI also demonstrated a sophisticated approach to diversifying its funding sources. A key milestone in 2025 was its unprecedented and successful debut in the United Kingdom's Sterling Market, opening a new and important channel for attracting investment and demonstrating its growing appeal to a wider base of international investors.

The Blueprint for Financial Resilience

Beneath the headline-grabbing strategic moves lies a foundation of rigorous financial discipline that JCR emphasized as a core strength. The agency noted CABEI's prudent financial management, which adheres strictly to its internal policies and international best practices. This is evidenced by the bank's robust capital adequacy ratio, which stood at a strong 38.3% as of mid-2025, comfortably exceeding the 35% Basel I requirement.

Furthermore, CABEI's loan portfolio remains a benchmark of quality. The bank maintains an arrears ratio of 0%, a rare and remarkable achievement that reinforces its status as a preferred creditor among its borrowing nations. This perfect repayment record signals strong governance, diligent project oversight, and a deep, collaborative relationship with its member countries. This pristine asset quality, combined with a consistent ability to generate net income, allows the bank to continuously strengthen its equity base from its own operations.

The recent successes are directly tied to the bank's new five-year strategy, which was formulated in late 2024. This forward-looking plan includes initiatives focused on capital enhancement, financial optimization, and institutional strengthening, all of which are now bearing fruit.

In response to the upgrade, CABEI's Executive President, Gisela Sánchez, stated: "This recognition by JCR is excellent news to begin 2026, as it confirms, from an external and independent perspective, the institutional strength we are building under our new Institutional and Financial Strategy. We have achieved five positive rating actions in less than a year, which allow us to accelerate towards the objective of offering our borrowing countries the most competitive financial conditions possible."

What the 'AA+' Rating Means for Central America

For the citizens and governments of CABEI's member countries, this credit rating upgrade is more than just a financial headline; it translates into tangible opportunities for economic progress. A higher credit rating lowers the bank's own cost of borrowing on international capital markets. As a mission-driven institution, CABEI is committed to passing these savings on to its clients.

This will enable the bank to offer more competitive financial conditions, including lower interest rates, longer repayment periods, and greater access to capital for critical development projects. Such favorable terms can significantly accelerate the implementation of initiatives in key sectors such as renewable energy, digital infrastructure, transportation networks, water and sanitation, and sustainable agriculture.

By making development financing more affordable, the 'AA+' rating empowers Central American nations to pursue more ambitious projects that can foster job creation, improve public services, and enhance economic resilience in the face of global challenges. It strengthens CABEI's role as a primary engine for financing the region's integration and long-term sustainable development goals.

A Trajectory of Consistent Ascent

This latest upgrade is part of a longer, impressive trend of continuous improvement for CABEI. The 'AA+' rating from JCR marks the fifth positive rating action the bank has received from various agencies in less than twelve months, a clear indicator of its strong momentum. This streak began in April 2025, when JCR itself affirmed the bank's 'AA' rating but signaled its confidence by improving the outlook from "Stable" to "Positive," effectively foreshadowing this upgrade.

Looking back further, CABEI has distinguished itself as one of the most rapidly improving multilateral development banks in Latin America, having secured a total of 17 rating upgrades over its history. This sustained trajectory of credit enhancement is a testament to decades of consistent effort in strengthening its governance, risk management frameworks, and financial standing.

With this new 'AA+' rating, CABEI not only solidifies its position as one of the most creditworthy development institutions globally but also enhances its power to attract capital and channel it effectively towards building a more prosperous and integrated Central America.