Region: Caribbean Development Bank awarded 'AAA' rating by S&P

NEW YORK, May 10 - Standard & Poor's Ratings Services said today that it assigned its 'AAA' long-term and 'A-1+' short-term foreign currency counterparty credit ratings to the Caribbean Development Bank (CDB). The outlook on the long-term rating is stable.

According to Standard & Poor's Ratings Services credit analyst Larry Hays, CDB's ratings are supported by its very strong capitalization. "CDB's adjusted shareholders' equity of nearly US$372 million at year-end 2003 was more than 72% of outstanding loans; moreover, CDB had more than US$137 million in callable capital from its 'AAA'-rated shareholders," said Dr. Hays. "Together, CDB's adjusted shareholders' equity and its 'AAA' callable capital were more than 99% of outstanding loans at year-end 2003, positioning it well to honor its obligations even during a protracted period of severe financial stress."

CDB's capitalization is particularly strong in light of the historically excellent performance of its loan portfolio. Dr. Hays explained that no public sector loan has been written off since CDB commenced operations in 1970, and that CDB had no impaired loans on its balance sheet at year-end 2003.

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