SANTO DOMINGO – The international credit rating agency Fitch Ratings reaffirmed the long-term and short-term national scale credit ratings of the Development and Export Bank (BANDEX) at 'AA+(dom)' and 'F1+(dom)', respectively. The outlook for the long-term rating is stable.
This means that BANDEX has the same country risk rating, the second highest on the scale, since its operations have the sovereign guarantee provided by the Dominican State.
According to the document issued by Fitch, “Bandex's ratings reflect the subsidiary and unlimited guarantee of the Dominican State for all securities and financial obligations issued by the institution, as declared in Law No. 122-21.”
“In Fitch's opinion, the role assigned to Bandex becomes relevant in the midst of the economic recovery process promoted by the Government to mitigate the effects of the coronavirus health contingency,” the note points out.
The document highlights that Bandex is 100% owned by the Dominican State and its strategic importance is supported by Law No.122-21. Bandex's new legal framework establishes not only its role in supporting investment development projects promoted by the public and private sectors, but also various mechanisms for the State to obtain resources to capitalize the bank.
He explains that Bandex's business model focuses on the development of productive sectors that generate an exportable supply. The bank's financing can be granted to individuals and legal entities, including entrepreneurs, micro, small and medium-sized businesses, through first- and second-tier banking operations.
It also states that "the outlook for the long-term national ratings is Stable, since the agency does not anticipate negative changes in the State's propensity to support Bandex."
