CAF receives the highest credit rating in its history from the agency S&P Global Ratings (S&P), thanks to the strengthening of its presence in Latin America and the Caribbean, the commitment of its shareholders with a historical capitalization, the incorporation of new full members and its financial strength, said the risk rating agency in its report.
The risk rating agency S&P Global Ratings (S&P) improved the rating long-term risk of CAF -development bank of Latin America- to AA from AA-, with stable outlook. In this way, CAF reaches the best credit rating level in its history with the rating agencies S&P, Fitch Ratings, Moody’s Investors Service and Japan Credit Rating (JCR), which consolidates the Institution’s trajectory and financial management and will allow it to provide better conditions for all its shareholders, contributing to the development and integration of its member countries.
In its report, S&P highlighted the commitment of CAF’s shareholder countries to strengthen the institution’s equity with a capital increase for USD 7,000 millionthe largest in its history, and noted that the stable outlook indicates his expectation that CAF will continue to support member countries and consolidate its presence in the region, while managing its capital prudently.
“The rating upgrade is based on our expectation that CAF will continue to strengthen its position in Latin America and the Caribbean thanks to its most recent capital increase, whose payments began in 2023. We also expect CAF to benefit from greater support from existing members and the incorporation of new member countries in recent years”, assured S&P in a press release.
CAF’s executive president, Sergio Diaz-Granados, highlighted: “We continue to consolidate the financial strength of the main asset of Latin Americans, which is CAF. This rating upgrade by S&P is a Good news for all Latin Americans and Caribbeans, that they will be able to access better financing conditions to promote social programs and strategic projects that will improve their quality of life”.
In its report S&P highlighted the financial strength of the institution reflected in its liquidity levelsjust like him robust and diversified financing profile Of the entity. In addition, he expects CAF’s capital position to remain resilient, despite the region’s vulnerabilities, as balance sheet growth will be accompanied by paid-in capital.
CAF has been carrying out, for more than three decadesa strategy of diversifying its financing sources, through a uninterrupted presence in global capital markets, which have placed it in a privileged position internationally. The multilateral promotes sustainable development and regional integration, through a efficient mobilization of resources for the timely provision of multiple, high-value-added financial servicesto clients from the public and private sectors of shareholder countries.
Source: Ambito
