Fitch Rates Central American Bank For Economic Integration CHF 200MM Bonds Due August 2022

Based on the documentation provided, Fitch Ratings has assigned Central American Bank for Economic Integration's (CABEI) senior unsecured CHF 200 million fixed-rate bonds due August 2022 a rating of 'A'. A full list of BCIE's current ratings follows at the end of this press release.

CABEI has issued a CHF 200 million senior unsecured bond under its medium-term note program. The bonds carry fixed-rate coupons of 0.371% and will mature on Aug. 26, 2022. Interest payments will be paid annually starting Aug. 26, 2016 up to and including the maturity date. The proceeds will be used for general business purposes. The impact on BCIE's leverage of this issuance is not deemed significant by Fitch.

KEY RATING DRIVERS

The bond's rating is aligned with the bank's 'A' long-term Issuer Default Rating (IDR), and constitutes an unsecured senior obligation that ranks pari passu with all other unsubordinated and unsecured CABEI obligations.

CABEI's ratings reflect its solid capital position, good asset quality metrics and the privileges and immunities conferred on it by its member countries. CABEI's preferred creditor status, ample loan loss reserves coverage and adequate investment policies mitigate the bank's relatively high credit risk exposure. The member countries' creditworthiness relative to higher rated multilateral development banks (MDB) and high loan concentrations weigh on the entity's ratings.

RATING SENSITIVITIES

The ratings on the senior unsecured notes are sensitive to any change in CABEI's long-term foreign currency IDR. The Rating Outlook on CABEI's IDRs is Stable. Improvements in risk management policies that align CABEI's liquidity and investment policies with those of higher rated MDBs could lead to an upgrade of CABEI's IDRs. In addition, a sustainable and substantial reduction in loan concentration, or a material enhancement of the capital base could also move IDRs upward.

An unexpected weakening of CABEI's financial profile including weaker capitalization driven by excessive loan growth, or marked deterioration in asset quality could result in downward pressure on CABEI's ratings.

KEY ASSUMPTIONS

Fitch assumes that member countries, even if experiencing severe difficulties, will continue to honor CABEI's preferred creditor status and exempt its private-sector borrowers from any measures that may affect the transfer and/or convertibility of their debt service payments.

Fitch currently rates CABEI as follows:

International Ratings

--Long-term IDR at 'A'; Outlook Stable;

--Short-term IDR at 'F1';

--Senior unsecured debt at 'A'.

Date of Relevant Rating Committee: Sept. 16, 2015.

Additional information is available on www.fitchratings.com.

Applicable Criteria

Supranationals Rating Criteria (pub. 29 May 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=866568

Additional Disclosures

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=999139

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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