Fitch upgrades CAF’s credit rating to ‘A+’

(Caracas, July 31, 2006).- Fitch Ratings recognized CAF’s financial strength once again by announcing an upgrade to its long term rating to ‘A+’ from ‘A’ (Rating Outlook Stable) and affirming its short term rating at ‘F1’.

CAF’s President and CEO, Enrique Garcia, indicated that this decision –announced by Fitch in New York- confirms the Corporation as the best-rated frequent issuer in Latin America, as a result of the soundness and stability of its operative results, the prudent management of its credit policies and the independence with which it operates within a political arena, owing to the support received from its shareholder countries.

CAF has received four ratings from the most prestigious rating agencies: Fitch Ratings (A+), Japan Credit Rating (AA-), Moody’s Investor Service (A1), and Standard & Poor’s (A). These agencies state that they take into account the sustained increase in the Corporation’s capitalization, its continued profitability and excellent financial results, as well as the preferred creditor privileges conferred on it by its member countries. On account of all this, President Garcia asserts: “the upgrade in our credit rating given by Fitch is, again, an acknowledgment of the Corporation’s sound financial management”.

In the announcement made by Fitch, the agency stated that the decision to upgrade CAF’s rating to ‘A+’ was driven by “the sum of several positive trends: the sustained improvement in the credit quality of its founding members, an enhanced capital base, and continuing advances in CAF’s self-imposed prudential and governance norms.” The agency also noted that even during crisis periods in Latin America or turmoil within the countries, CAF has been able to operate without interruption and sustain strong asset quality, thanks to its conservative credit policies, experience in the region and the strong support of its shareholders, who have never failed to meet their financial obligations with the institution.