Japanese agency JCR upgrades outlook for CAF

(Special, May 24, 2007).- The Japanese risk rating agency Japan Credit Rating (JCR) upgraded the rating outlook for the Andean Development Corporation (CAF) from stable to positive, which implies a possible improvement in the rating in the medium term, which is currently at “AA-“.

In the announcement, JCR said that the decision to change the outlook to positive was due to improvement of the quality of the assets and the strengthening of the Corporation’s capital with the potential participation of Brazil, Argentina and Uruguay as full members in the next few years.

CAF President & CEO Enrique García said that this decision, announced in Tokyo, “recognizes the constant strengthening of the CAF financial structure and reflects its new Latin American dimension.”

CAF currently has four ratings granted by the most prestigious international agencies: Fitch (A+), Japan Credit Rating Agency (AA-), Moody’s Investor Service (A1), and Standard & Poor’s (A+).

The Corporation’s financial strategy is based on diversification and expansion of sources of funds and reduction of costs on international financial markets, having made 56 bond issues to date on very competitive conditions. The purpose of raising these funds is to finance important projects in line with the multilateral financial organization’s mission to promote the sustainable development and regional integration of its member countries, in both public and private spheres.