Fitch Upgrades CAF Rating Outlook

The commitment of CAF—development bank of Latin America—to supporting countries in the region with funds and technical assistance in an agile and timely manner was recognized by Fitch Rating, which upgraded CAF’s credit rating outlook to stable, thus ratifying the long-term A+ rating and F1+ short-term rating. The factors cited by the rating agency include high capitalization and liquidity indicators, as well as the quality and performance of its assets.

In its review, Fitch highlighted: “The bank has responded to the coronavirus pandemic by reallocating and increasing its approved lending envelope for 2020 to a record USD 14 billion (compared with USD 13 billion in 2019). A significant portion of this lending has been earmarked to support countries in dealing with the effect of the pandemic on the economy and healthcare systems.”

CAF executive president Luis Carranza Ugarte, welcomed the good news for the region: “Fitch’s upgrading is an endorsement of CAF’s management, and recognizes the continued strengthening of our financial structure, thanks to the unwavering support of its shareholder countries through its capital contributions. Mexico’s accession as a full member was also highlighted by the rating agency. This will help us continue to fulfill our catalytic role in securing competitive funds for Latin America when they are most needed.”

CAF has developed a diversification strategy for its funding sources over the past two decades, through constant presence in global capital markets, ultimately reaching a privileged status worldwide. This multilateral agency promotes sustainable development and regional integration through efficient mobilization of funds for a timely provision of multiple financial services with high added value, to customers in public and private sectors of shareholder countries.