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Fitch Rates Caribbean Development Bank ‘AA+’; Outlook Stable

Fitch Ratings has assigned Caribbean Development Bank (CDB) a Long-Term Issuer Default Rating (IDR) of ‘AA+’ with a Stable Outlook and a Short-Term IDR of ‘F1+’.  KEY RATING DRIVERS The ratings and Stable Outlook reflect the following key rating drivers: The ratings of CDB are fully driven by its intrinsic credit quality, most notably its high level of solvency (assessed at aa) and its excellent liquidity (assessed at aaa). The ‘medium-risk’ business environment assessment (comprising a low-risk assessment of business profile and medium-risk assessment of the operating environment) adds a single notch to the solvency assessment of ‘aa’, resulting in an overall intrinsic rating of ‘aa+’. The ‘aa’ solvency assessment of CDB is driven by ‘excellent’ capitalisation and a ‘low’ risk profile. Capitalisation is a key strength for the ratings. The equity-to-adjusted assets ratio of 56.6% at end-September 2016 (62% at end-2015) is assessed as ‘excellent’ in Fitch’s supranational criteria – far above the 25% threshold for an assessment of ‘excellent’. Fitch views CDB’s risk profile as low-risk, […]

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Essex Valley farmers to benefit from GBP35.5 million grant

Jamaica

Farmers in Essex Valley in St. Elizabeth, Jamaica, are to benefit from the development of an irrigation system, which will supply water to approximately 700 hectares of agricultural land in that parish. The project is being funded through a grant of GBP35.5 million (mn) from the United Kingdom Caribbean Infrastructure Partnership Fund (UKCIF), which is administered by the Caribbean Development Bank (CDB). “Jamaica’s agriculture sector is an important contributor to socioeconomic development, and provides important sources of employment. However, irregular rainfall, prolonged droughts and the possible impacts of climate change all affect agricultural production. This project is intended to reduce the water-related challenges faced by farmers in Essex Valley, and enhance agricultural production and productivity,” said Andrew Dupigny, Head of Infrastructure Partnerships at CDB. Agriculture is the most dominant sector in St. Elizabeth, employing 40 percent of the population. The availability of water is considered a major challenge, and the Essex Valley area is characterized by low rainfall with frequent droughts. Some 55 percent of farmers depend exclusively […]

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Workshop raises awareness about sea water air conditioning technology

Sea Water Air Conditioning in the Caribbean Workshop

Sea water air conditioning (SWAC) technology has the potential to help the Caribbean to achieve national and regional goals of energy efficiency, and reduce reliance on fossil fuels. This view was put forward by Vice-President (Operations) at the Caribbean Development Bank (CDB), Patricia McKenzie as she addressed the opening of a workshop on SWAC.

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CDB funds project to prevent loss of correspondent banking relationships

The Board of Directors of the Caribbean Development Bank (CDB) has approved funding of USD250,000 to strengthen financial transparency, and assist in preventing the loss of correspondent banking relationships (CBRs) in the Region. In the Caribbean, CBRs facilitate a number of payment systems, including international trade, cross-border payments and receiving of remittances. Recently, some large international banks have started terminating or severely limiting their CBRs with smaller local and regional banks, in an effort to reduce exposure to risks associated with money-laundering and financing of terrorism. This process, known as de-risking, has negative implications for the Caribbean, potentially resulting the loss of trade relationships and negative economic impacts. “CBRs are fundamental to the efficient operation and resilience of the global financial system. This project will contribute to a more stable financial system in the Caribbean, which will in turn allow more banks to access CBRs, so that they can continue to carry out international transactions. This is critical if the Caribbean is to reduce poverty and spur economic […]

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Antigua and Barbuda receives USD45.9 mn loan to upgrade roads

The Caribbean Development Bank (CDB) has approved a loan of USD45.9 million to assist the Government of Antigua and Barbuda with the development and management of a reliable and sustainable road sector. The loan will be used to rehabilitate 27.76 km of existing roads: Anchorage Road, Sir Sydney Walling Highway, Old Parham Road and Valley Road (north). “A reliable road sector in Antigua and Barbuda is essential for economic development and the delivery of services to all parts of the country, particularly rural communities, which will be unable to develop without access to an efficient road network,” said Daniel Best, Director of Projects at CDB. The four roads to be upgraded under the Project are currently used by 37 percent of the population of Antigua and Barbuda on a daily basis, and serve to connect the capital, St. John’s, agricultural zones in the south, prime tourism areas, heavily populated communities and the V.C. Bird International Airport. Rehabilitation work will include the upgrading of drainage structures, which are currently […]

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CDB, Government of Trinidad and Tobago, launch USD436.7mn country strategy

Government of Trinidad and Tobago

The Caribbean Development Bank (CDB), in partnership with the Government of Trinidad and Tobago, has formally launched a country strategy for the nation, which proposes financial support of USD436.7 million for the period 2017 to 2021.  On March 9, stakeholders from CDB and the Government of Trinidad and Tobago attended a launch event in Lowlands, Tobago, during which the Bank outlined the programme of support.

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