Risk rating upgraded again

CAF President & CEO Enrique García said that the decision - announced by Moody’s in New York - confirmed the institution as the Latin American issuer with the best risk rating, as a result of the strength and stability of its operating results, the prudence of its credit policies and the political independence of its actions, thanks to the support given by its shareholder countries.

García said that the improved risk rating from Moody's was recognition and backing for the Corporation’s financial management, "as well as helping to obtain more funds, which will be invested in favor of the 17 shareholder countries." In 2004 the development bank approved over US$3.5 billion in loans for the region.

Moody's confirmed that the decision to upgrade is due to the support given by CAF shareholders throughout the Corporation’s history, support that has been demonstrated not only by the prompt payment of its obligations but also by continuous capital contributions.

The agency also said that in crisis periods for Latin America as well at times of individual uncertainty in countries, the members have always made their payments, never defaulting on their financial obligations with the regional organization.

CAF has three ratings issued by the most prestigious risk agencies: Moodys (A1), Standard & Poor’s (A) and Fitch (A) based on the sustained growth of the earnings of the institution, continuous profitability and efficient financial performance, as well as the immunities and privileges conferred by its international legal statute.

The Andean Development Corporation recently made a bond issue on the Japanese Samurai market for 20 billion yen, led by the Japanese investment banks Mizuho and Nomura. The purpose of the placements on international markets is to finance major projects in accord with mission of the multilateral organization to support the integration and productive expansion of the public and private sectors of its member countries.

The Corporation's financial strategy is supported by a diversification and expansion of its sources of financing and a reduction of costs on international financial markets, being recognized as the most competitive Latin American issuer in relation to the rates and terms obtained for its 47 bond issues to date.

Last March, LatinFinance, leading Latin American financial and investment publication, awarded its prestigious Man of the Year 2005 Prize to CAF President Enrique García for his work at the head of the organization.