CDB gets AA+ from Fitch Ratings

Fitch Ratings has affirmed the Caribbean Development Bank’s (CDB) Long-Term Issuer Default Rating (IDR) at ‘AA+’ with a Stable Outlook.

In its rating action commentary issued on February 5, 2026, Fitch stated that “CDB’s ‘AA+’ Long-Term IDR reflects its Standalone Credit Profile (SCP) of ‘aa+’, underpinned by liquidity and solvency assessments of ‘aaa’ and ‘aa+’, respectively.”

A CDB release states that the rating agency cited the Bank’s “excellent capitalisation” as a key rating driver stating that, “At end-September 2025, Fitch’s usable capital/risk-weighted assets (FRA) ratio was 78%, well above the 35% threshold for an ‘excellent’ assessment, and the equity/adjusted assets and guarantees ratio was 46%, comfortably above the 25% threshold for an ‘excellent’ assessment.

“These metrics are strong relative to peers, which highlights the resilience of the bank’s capitalisation, supported by its strong loan performance”.

Other main drivers are CDB’s “‘low’ credit risk”, with Fitch assessing the Bank’s preferred creditor status as ‘excellent’; and its “very high liquidity”, which was ranked at ‘aaa’ “due to ‘excellent’ liquidity buffers and the ‘excellent’ credit quality of the treasury portfolio”.

Fitch also referred to the historic US$450 million Exposure Exchange Agreement the CDB executed with the Central American Bank for Economic Integration (CABEI) in May 2025, stating that the new arrangement, which reduced the Bank’s top five borrower concentration, is responsible for improving its concentration assessment to ‘low’ from ‘moderate’.

The rating agency also indicated that CDB’s Special Development Fund, which is delinked from its credit profile, reduces the risk of any unexpected, negative impact on the bank’s ordinary capital resources balance sheet while maintaining its capacity to provide concessional resources to the poorest member countries in the Caribbean.

“This affirmation from Fitch is a powerful validation of our “Rebirth” Vision and strategic pivot toward aggressive financial innovation,” CDB President, Daniel M. Best, explained. “By maintaining ‘excellent’ capitalization and executing landmark initiatives like our Exposure Exchange Agreement, we are supporting Caribbean resilience. The ‘AA+’ rating ensures that CDB remains a formidable engine for sustainable development, capable of securing the low-cost capital our member countries need to thrive in an uncertain global climate.”