Standard & Poor’s cuts CDB credit rating

On June 12, Standard & Poor’s Ratings Services lowered its long-term issuer credit rating on the Caribbean Development Bank (CDB) to ‘AA+’ from ‘AAA’ and affirmed the short-term ‘A-1+’ rating. The bank’s outlook is stable.

According to S&P, the downgrade reflects the agency’s view that CDB’s risk management is not commensurate with other ‘AAA’ rated multilateral lending institutions, particularly given its size and regional economic weakness.

Caribbean Development Bank has failed to comply with one of its internal liquidity policy guidelines, and borrower concentration remains high. It was announced by Standard & Poor’s Ratings Services that the CDB’s liquidity was tighter in 2011 than in previous years.

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