Standard & Poor's confirms CAF investment grade

Standard and Poor's confirmed the BBB investment-grade rating granted to CAF on the basis of "its strong capitalization, consistent operating results, shareholder backing and its credit preferential treatment," according to reports from New York.

CAF President & CEO Enrique García said this was an "important recognition of the Andean countries." Since the start of the Mexican crisis, the Corporation has been the only Latin American issuer to successfully participate in the euro-yen market, in February with US$120 million; in the Yankee bond market, in July with US$250 million; and the commercial paper market (USCP), with US$200 million in August. “The CAF issues have made significant contribution to re-establishing investor confidence in the countries of Latin America, especially the members of the Andean Group," he added.

Taking into consideration its successive successful transactions on international capital markets and the solidity of its financial indicators, last June the prestigious British magazine Euromoney awarded CAF the "Euromoney’s Borrowers of the Year Award," in its “Best Latin American issuer" category.

According to Standard & Poor's "the capital contributions of its member countries have been a constant in its 25 years of activities." The agency highlights the fact that in 1994, despite the bank crisis and imposition of exchange controls, Venezuela paid its annual quota and all its credit commitments to CAF. In 1994, the Corporation approved operations for US$2.16 billion in favor of member countries, and as of June 1995 net earnings were US$26 million.