Fitch affirms CAF's rating at AA- with stable outlook

The risk rating firm Fitch Ratings affirmed the long-term risk rating of CAF -development bank of Latin America and the Caribbean- at AA- with a Stable Outlook. This rating action reaffirms investor confidence in CAF, which will allow it to offer financing under better conditions to its member countries.

In its report, Fitch highlighted the solvency assessment at 'aa-' and liquidity at 'aa', as well as the average business risk profile in which the bank operates. “CAF's solvency assessment at 'aa-' is derived from its excellent capitalization and moderate risk profile,” Fitch explained in a press release. “Continuous capital injections by shareholders, under the general capital increase programs, will allow the increase in bank loans and the diversification of the loan portfolio during the coming years, which will support CAF's ratings,” it states. stands out in the statement.

The executive president of CAF, Sergio Díaz-Granados, stated: “This Fitch rating reflects the commitment of the countries to strengthen CAF and their trust in us to continue materializing the goal of being the green bank and the sustainable and inclusive growth of the region. The incorporation of new shareholders and the mobilization of resources from strategic allies will allow us to offer more solutions to improve the quality of life of Latin Americans and Caribbeans.”

Fitch Ratings also highlighted that CAF's share expansion strategy beyond South America, along with the incorporation of new members, exerts a positive influence on solvency metrics through an increase in capital contributions and portfolio diversification.

In this way, CAF maintains the best credit rating level in its history with the rating agencies Fitch, S&P Global, Moody's and JCR. The above was reflected in greater support from investors, who gave their vote of confidence with the demand for more than 40 bond issues during 2023, in various international markets in 15 different currencies, reaching an amount for the first time. approximate total of USD 6.25 billion. For example, the bond issued in October in the American market for USD 1,750 million represents the largest CAF issuance in its history in the capital markets, while also achieving the highest historical demand, for an amount greater than USD 3,400 millions.

For more than three decades, CAF has been carrying out a strategy of diversifying its financing sources, 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 efficient mobilization of resources for the timely provision of multiple financial services, with high added value, to clients from the public and private sectors of the shareholder countries.