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Saturday, January 28, 2023

Fitch upgrades CAF’s rating to AA-

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In its report, Fitch highlighted the commitment of CAF’s shareholder countries to strengthen the institution’s equity with a capital increase for a total amount of USD 7,000 million, the largest in its history. He also pointed out that several countries have already signed this agreement and have begun to pay their respective contributions.

“The improvement of CAF’s ratings reflects a strengthening of its independent credit profile to ‘aa-‘ from ‘a+’, supported by review in bank’s solvency assessment. The recently approved significant capital increase and the favorable dynamics of the loan portfolio will support the continued improvement of CAF’s solvency profile. Capital contributions from CAF shareholders will support credit expansion and diversification of the bank’s portfolio in the coming yearsat the same time that it will help to maintain the “excellent” capitalization indicators”, Fitch explained in a press release.

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CAF’s executive president, Sergio Diaz-Granadoshighlighted: “We start the year with 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. That represents this increase in Fitch’s rating thanks to the Commitment of the countries to strengthen CAF and place your trust in us to continue materializing our goal of being the green bank and economic and social reactivation region of”.

Fitch Ratings also highlighted CAF’s strategy to increase shareholder participation as Chile, Costa Rica and the Dominican Republic who became full members, as well as the incorporation of new shareholders such as The Savior and the process that the Republic of Honduras.

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This way, CAF reach the best credit rating level in its history with the rating agencies Fitch, S&P Global, Moody’s and JCR.

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

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