Investment grade rating granted for second time

This is the second time CAF has received this rating, which is the highest given to a bank in Latin America, and the first time a Latin American institution or country has obtained this rating from two different agencies.

In April this year, Standard and Poor’s assigned "BBB" investment grade to the Corporation’s long-term obligations, which had previously only been assigned to the Republic of Chile.

CAF President & CEO Enrique García said the new recognition further strengthens the Corporation’s position on world financial markets. He said he was "very pleased" by Moody’s recognition because it is an additional support for the recent US$100 million bond issue which CAF successfully placed on the Euromarket. "The investment-grade rating will facilitate similar issues in the near future on very competitive conditions for the region," he said.

Consulted about the importance of this development, CAF Vice President of Finance Juan Fernando Posada said with this rating "we will be able to penetrate a larger number of financial markets, attract more investors and more funds into Latin America, enabling CAF to expand operations in favor of the development of its member countries."

Moody’s decision is based on a detailed study of CAF’s activities, its institutional development and indicators, which reflect its excellent record on portfolio recovery, strong financial situation, and total support from its member countries.

One of CAF’s objectives is to contribute to the development of its member countries by granting short, medium and long-term loans to the public and private sectors. It also acts as a trade and investment bank by offering a range of financial services.

Additionally, it actively promotes generation of funds through bond issues placed on the world’s leading capital markets.