Standard & Poor’s raises CAF's rating
- The agency lifted the financial institution's credit rating to AA-, with a stable outlook.
- S&P's decision follows Moody’s upgrade earlier this year to Aa3.
CAF President Enrique García said this new recognition amid the global financial crisis is an endorsement of the institution's financial management. "The member nations' commitment has been of great importance for achievements like the one we have obtained today," he said.
Indeed, in less than a year, the institution's shareholder countries signed agreements for the $2 billion paid-in capital increase decided by CAF's board in November 2011. Between 2007 and 2011, paid-in capital increases agreed by the shareholders amounted to $6.3 billion.
"Thanks to the strengthening of its capital base, CAF will be able to approve loans for regional development for up to $80 billion in the 2012-2017 period, increase the loan portfolio to more than $30 billion, and double its capital by 2017," Mr. García said.
Standard & Poor's decision, released today, is based on CAF's shareholders support throughout the history of the institution. S&P also highlighted the substantial expansion of the shareholder base, a cautious management of assets and liabilities, and the continued improvement of financial indicators.
CAF has been active in prestigious capital markets as part of a very select group of debt issuers, and has played a catalytic role by attracting funds to Latin America from other regions and from a diversified pool of investors, thereby promoting investment and business opportunities across the region.
CAF's debt placements between 1993 and 2012 totaled approximately $17 billion, which translated directly into investments in development projects in Latin America. "The institution's continued presence in various capital markets has allowedus to issue more than $2.8 billion [in international debt] in 2012," Mr. García said.
CAF currently has four credit ratings awarded by the most prestigious international risk agencies: Standard & Poor's (AA-), Moody's (Aa3), Japan Credit Rating (AA-) and Fitch Ratings (A +).
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