The Caribbean Development Bank (CDB) responds to credit downgrade
By The TDN Wire Staff
June 18, 2012 8:30 P.M.
CDB President Dr Warren Smith.
Bridgetown, Barbados (TDN) -- The Caribbean Development Bank (CDB) headquartered in Barbados has responded to the recent downgrade by Standard and Poor’s from an AAA to AA+. CDB president Dr Warren Smith has pledged that his bank will “spare no effort” in ensuring that there are no further downgrades of their operations.
On June 12, 2012 the world’s top ranked rating agency said that it statement issued on June 15, 2012, the bank president responded directly to S&P’s concern on its risk management saying that the CDB “has started to address these concerns.”
“In particular, the Bank is already undertaking an in-depth examination of its risk management framework. Discussions have started with some of the major shareholders with a view to securing assistance in strengthening the internal risk management capacity. CDB intends to implement appropriate recommendations by year end.”
The statement also addressed the concern raised by S&P regarding the heavy front-loading of short-term maturities on its borrowings. It noted that “the Bank is actively engaged in addressing the maturity profile of its borrowings, including making more use of amortised borrowings and, wherever possible, increasing its funding from institutional sources.”
Smith also wet on to stress the important role played by the CDB in regional development and reaffirmed the bank’s commitment to take “corrective action” to address the various concerns that have been raised by the credit rating agencies while also “counting on the continued support of our member countries”.
