Moody’s Affirms CAF’s Aa3 Rating and Stable Outlook

Moody’s recognized the high credit quality of CAF—development bank of Latin America—by affirming its Aa3 rating and stable outlook. Moody’s report highlights the financial soundness of the institution, the positive performance of its assets, the proven commitment of shareholders through constant capital increases and the accession of Costa Rica and Mexico as full members.

“CAF’s strong intrinsic financial strength continues to reflect strong asset performance and high levels of paid-in capital that underpin strong capital liquidity. Strong liquidity coverage and extensive access to capital markets support Moody’s assessment of CAF’s strong liquidity performance and financing,” noted the risk rating agency in a statement.

CAF’s acting executive president Renny Lopez highlighted: “Moody's ratification reflects CAF’s financial strength, thanks to the continued support of shareholder countries and the strategy of broadening the shareholder base. The pandemic has put us to the test and we have risen to the countries’ needs to support Latin Americans with rapid and timely funds while maintaining credit strength. We will continue to support care and reactivation plans as unconditional partners in the region’s wellbeing and development.”

CAF closed 2020 with a record USD 14 billion in loan approvals, mostly to address the effects of the pandemic on the economy and healthcare systems, as well as to improve digital, land and energy infrastructures. At the close of its 50th anniversary, the multilateral agency had accumulated a total of more than USD 200 billion in approvals since 1970 to promote sustainable development and regional integration.