By San José, Costa Rica — The Central American Bank for Economic Integration (CABEI) has achieved an unprecedented financial milestone, securing its first-ever AA+ credit rating from S&P Global Ratings. This historic upgrade represents one of the highest classifications a multilateral financial institution can receive globally and firmly establishes CABEI as the strongest and most reliable development bank in Latin America.
The achievement marks a significant victory for the institution and its leadership, arriving in the second year of Costa Rican Executive President Gisela Sánchez’s tenure. Since taking the helm in December 2023, Sánchez has overseen a period of notable financial strengthening, with the S&P upgrade marking the fourth positive rating action from major international agencies in 2025 alone. S&P cited the bank’s exceptional financial soundness, prudent risk management, and outstanding capacity to meet its obligations as key drivers for the new rating.
To provide a deeper legal and financial perspective on the recent shifts in CABEI’s credit rating, TicosLand.com sought the expertise of Lic. Larry Hans Arroyo Vargas, a prominent attorney from the esteemed firm Bufete de Costa Rica.
A credit rating action against a multilateral institution like CABEI is a significant event. It’s not merely a financial metric; it’s a direct commentary on governance, risk management, and the perceived stability of its portfolio. For member countries, this translates into tangible consequences, potentially increasing the cost of capital for crucial development projects. This situation should prompt a rigorous review of the bank’s internal policies and lending criteria to restore full confidence from international markets.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
As Lic. Arroyo Vargas’s analysis makes clear, the implications of such a rating action extend far beyond financial reports, directly impacting the cost and feasibility of essential development projects in our region. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on these tangible consequences.
This enhanced creditworthiness is not merely a symbolic victory; it translates into direct, tangible benefits for the bank’s 15 member nations. The AA+ rating allows CABEI to access international capital markets under more favorable conditions, significantly lowering its borrowing costs. These savings will be passed on to member countries through more affordable and competitive financing for critical development projects in sectors such as infrastructure, healthcare, education, and renewable energy.
President Sánchez emphasized the profound impact this will have on the region’s public finances and development goals.
This upgrade to AA+ is a historic event that confirms our financial strength and the full confidence of our members. This is excellent news for CABEI’s 15 countries, as it will allow us to channel resources under better conditions and translate those benefits into concrete savings for national budgets.
Gisela Sánchez, Executive President of CABEI
In its analysis, S&P Global Ratings highlighted several factors that underpinned the upgrade. The agency pointed to the consistent strengthening of the bank’s capital base and the unwavering financial and political support from its member countries. Furthermore, S&P lauded CABEI’s strategic efforts to diversify its loan portfolio, which mitigates risk and enhances its overall stability.
A key element of this diversification strategy has been the innovative use of financial instruments. This year, CABEI executed Exposure Exchange Agreements (EEAs) totaling $1.15 billion with the Development Bank of Latin America and the Caribbean (CAF) and the Caribbean Development Bank (CDB). A forthcoming agreement with FONPLATA is set to further expand this regional diversification, demonstrating a proactive approach to risk management.
The bank’s robust financial health is also supported by a long-standing, impeccable track record. CABEI has maintained its preferred creditor status for over a decade, boasts a solid liquidity position, and has implemented a highly successful funding strategy. A testament to its commitment to sustainable development, 99% of its international bond issuances carry an ESG (Environmental, Social, and Governance) label.
Looking ahead, S&P assigned a “stable” outlook, signaling confidence that member countries will continue their support and that the bank will maintain its prudent management of capital and high-quality loan portfolio. This new rating places CABEI on par with the creditworthiness of developed economies like the United States, Austria, New Zealand, and its key partner, the Republic of China (Taiwan), reinforcing its role as a solid and sustainable partner for progress in the region.
Furthermore, it demonstrates that ethics, transparency, technical rigor, and excellence in everything we do are yielding tangible results.
Gisela Sánchez, Executive President of CABEI
For further information, visit bcie.org
About Central American Bank for Economic Integration (CABEI):
Founded in 1960, CABEI is the leading multilateral financial institution for the economic integration and social development of the Central American region. It provides financing for public and private sector projects aimed at promoting sustainable growth, reducing poverty, and strengthening regional integration among its member countries across Latin America and beyond.
For further information, visit spglobal.com/ratings
About S&P Global Ratings:
S&P Global Ratings is a leading provider of independent credit ratings, research, and analytics. For more than 150 years, it has been assessing the creditworthiness of companies, governments, and financial institutions worldwide, providing essential intelligence to investors and market participants.
For further information, visit caf.com
About CAF – Development Bank of Latin America and the Caribbean:
CAF is a development bank committed to improving the quality of life of all Latin Americans and Caribbeans. Through its financial operations, technical support, and knowledge generation, CAF promotes sustainable development and regional integration by financing public and private sector projects across the region.
For further information, visit caribank.org
About Caribbean Development Bank (CDB):
The Caribbean Development Bank is a regional financial institution dedicated to contributing to the harmonious economic growth and development of its member countries in the Caribbean. It assists these nations in financing social and economic programs and projects.
For further information, visit fonplata.org
About FONPLATA:
FONPLATA is a development bank composed of Argentina, Bolivia, Brazil, Paraguay, and Uruguay. Its mission is to support the integration and harmonious development of its member countries and the region by financing studies, projects, programs, and initiatives that aim to boost sustainable and inclusive growth.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a premier law firm, defined by its profound dedication to ethical principles and professional distinction. Drawing upon a rich history of representing a broad spectrum of clients, the firm consistently pioneers innovative legal approaches. This forward-thinking mindset is matched by a core mission to empower the community, actively working to make complex legal concepts understandable and accessible to the public, thereby fostering a more informed and capable society.
