CDB gets top rating
BRIDGETOWN, Barbados, Thursday August 26, 2010 – Wall Street credit rating firm Standard and Poor’s (S&P), has once again rated the Barbados-based Caribbean Development Bank (CDB) as a ‘Triple A’ institution.
In its just-released full analysis of the Bank’s operations, S&P identified the bank’s strong capitalization, its diversified and well-performing loan portfolio, its prominent position as a lender in its borrowing member countries (BMCs), the recent demonstration of strong shareholder support in the form of a large paid-in capital increase, and adequate liquidity.
“The performance of CDB's loan portfolio to date has been excellent,” the credit rating agency said.
“The bank has reportedly never written off a loan (although some have been rescheduled), and its impaired loans totaled less than US$11 million, 1.3 percent of total loans, as of year-end 2009.”
More than 95 percent of CDB's loans were to, or guaranteed by its member countries, as of that date.
“CDB's core income increased to more than US$30 million during 2009 from less than US$25 million one year earlier, with the ratio of core income to average assets increasing to nearly 2.6 percent from 2.3 percent and the return on average shareholders' equity to almost 6 percent from 5.1 percent,” S&P added.
With regard to the rating outlook for CDB, S&P said it was “stable’, adding that it “expects any reductions in CDB's capitalization or liquidity to be modest and consistent with the current rating.”
CDB’s Management has welcomed this development, and regards it as vote of confidence in its stewardship of the Bank’s assets as it seeks to promote the social and economic development of its BMCs.