Moody´s raises CAF rating

CAF’s executive president & CEO, Enrique García, said the decision - announced by Moody's in New York – endorses the multilateral’s position as the best rated Latin American issuer, based on the strength and stability of its operating results, its prudent lending policies and political independence, and the continuing support of its shareholder countries.

García said this perception stems from CAF’s presence in the most demanding capital markets: Japan and Southeast Asia, Europe and the United States, where it has placed over $4 billion at the most competitive rates and terms for the region. These funds are channeled to shareholder countries on attractive conditions.

Moody's said the decision to upgrade CAF’s ratings is based on its liquidity and its proven ability to maintain financial flexibility even in the most difficult times. Other key factors were the announcement of Spain’s imminent entry into the Corporation, and its continuing preferred lender status in the shareholder countries.

CAF is the first multilateral financial institution to enter the short-term note program in the Spanish market through a EUR500 million program launched in Madrid last year, as part of its strategy to diversify its sources of competitive funds for the region. This catalytic effort was rewarded with the Best Multilateral of 2000 award from the publication Latin Finance.

CAF has three investment grade credit ratings awarded by the most prestigious agencies: Moody's, Standard and Poor's, and Fitch, which reflect the sustained growth of the organization’s income, its continuing profitability and effective financial performance, as well as the immunities and privileges conferred by its international status.