New international financial recognition for CAF

The prestigious risk rating agency Moody's upgraded from "Baa3" to "Baa2" the investment-grade rating assigned to the Corporation for its long-term debt, taking into consideration consistency of operating results, sustained growth of income and net worth, continuous return on investment and efficient performance in 1995.

The information was reported by Moody’s Investment Service in New York on January 19. The report said the decision was also influenced by "sovereign risk and the immunities and privileges which this multilateral institution enjoys because of its international legal status, and the good economic performance of its member countries during the year recently ended."

CAF -- financial institution formed by Bolivia, Colombia, Ecuador, Peru and Venezuela -- also has Brazil, Chile, Mexico, Trinidad and Tobago in its shareholder base together with 22 private banks from the Andean region. The Corporation was the first Latin American issuer to receive three investment-grade ratings from Standard & Poor's, Moody’s and IBCA in 1993. Backed by this recognition, the institution redirected its financial strategy to expand its participation on international capital markets.

CAF President & CEO Enrique García said he was very pleased with the news. It was recognition of the institution’s financial solidity and the positive performance of member countries during the year. "This new rating not only backs the Corporation in its strategy of continuing to generate funds on competitive conditions, but also facilitates individual access by each country to international financial markets."

In the last 30 months CAF has made issues on the leading markets in Europe, Japan, and the United States and Southeast Asia for over US$1.10 billion. In fact, the institution was the first issuer Latin American issuer to access these markets after the Mexican crisis, which brought the distinction of “Best Latin American Issuer” awarded by the British publication Euromoney in 1995.