Fitch raises CAF's rating to AA-

Fitch Ratings upgraded the long-term credit rating of CAF -development bank of Latin America- from A+ to AA- with a stable outlook. This upgrading reaffirms investors' confidence in CAF, which will allow the institution to offer better financing to its member countries.

In its report, Fitch highlighted the commitment of CAF's shareholder countries to strengthen the institution's equity with a capital increase of US$7 billion, the largest in its history. It also indicated that several countries have already signed and begun to pay their respective contributions.

"CAF's rating upgrade reflects the strength of its standalone credit profile to 'AA-' from 'A+', supported by the bank's creditworthiness assessment. The recently approved very large capital increase and favourable loan portfolio dynamics, will support continued improvement in CAF’s solvency profile. CAF's shareholders' capital contributions will support the bank's lending expansion and portfolio diversification in the coming years while maintaining 'excellent' capitalization metrics" indicated Fitch in a press release.

CAF's Executive President, Sergio Díaz-Granados, stated: "We begin the year with good news for all Latin Americans and Caribbeans who will be able to access better financing conditions to promote social programs and strategic projects that will improve their quality of life. This is what this increase in Fitch's rating represents thanks to the commitment of the countries to strengthen CAF and place their trust in the institution to continue achieving our goal of being the green bank and an engine to the economic and social reactivation of the region".

Fitch Ratings also mentioned CAF's strategy to increase shareholder participation such as Chile, Costa Rica and the Dominican Republic, which became full members, as well as the incorporation of new shareholders such as El Salvador and the process being followed by the Republic of Honduras.

With this upgrade, CAF achieves the best credit rating in its history with the agencies Fitch, S&P Global, Moody's and JCR.

For more than three decades, CAF has pursued a strategy of diversifying its sources of financing through an uninterrupted presence in global capital markets, which has placed it in a privileged position internationally. The multilateral promotes sustainable development and regional integration through the efficient mobilization of resources for the timely provision of multiple, high value-added financial services to public and private sector clients in shareholder countries.