Bangkok--30 Mar--Fitch Ratings
Fitch Ratings (Thailand) Limited has affirmed Central American Bank for Economic Integration's (CABEI) National Long-Term rating of its THB senior unsecured bonds as follows: THB2.374bn senior unsecured bonds due 2017 at 'AAA(tha)'
THB1bn senior unsecured bonds due 2014 at 'AAA(tha)'
THB0.865bn senior unsecured bonds due 2016 at 'AAA(tha)'
THB1.235bn senior unsecured bonds due 2021 'AAA(tha)'
This follows the agency's recent upgrade of CABEI's Long-term Issuer Default Rating (IDR) to 'A' from 'A-' and its Short-term IDR to 'F1' from 'F2'. The Outlook is Stable (see "Fitch Upgrades CABEI's IDR to 'A'; Outlook Stable" dated 19 March 2012 on www.fitchratings.com).
The ratings of CABEI's senior unsecured bonds are based on the issuer's Long-Term Foreign Currency (LTFC) IDR of 'A' which is higher than Thailand Long-Term Local Currency (LTLC) IDR of 'A-' and mapped to 'AAA(tha)' on the National Rating scale. CABEI's issue ratings are affirmed at 'AAA(tha)' as this is the highest rating on Thailand's National Rating scale.
CABEI's National ratings could be downgraded if CABEI's LTFC IDR falls below Thailand's LTLC IDR, although this is unlikely in the near term, given the Outlook on CABEI is Stable. The upgrade of Thailand's LTLC IDR to 'A' should not affect CABEI's National ratings as CABEI's LTFC IDR would be at the same level with Thailand's LTLC IDR, implying a National rating of 'AAA(tha)'.
CABEI's current ratings balance the bank's solid financial profile and preferred-creditor status and privileges conferred on it by its member countries against significant loan concentration in low-rated sovereigns and the volatile economic environment in some of the countries in which the institution operates. The Stable Outlook reflects Fitch's expectation that CABEI's risk profile will not substantially change in the foreseeable future.
CABEI is a Central American MDB based in Tegucigalpa, Honduras. It is not subject to local regulation or taxation. It is currently 59%-owned by its five founding member states - Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. The remaining shares belong to other non-regional members: Argentina, Colombia, Mexico, Taiwan, Spain, Dominican Republic and Panama. CABEI's objective is to fund development projects in Central America by channeling medium- and long-term foreign currency resources both to public and private institutions.