Standard & Poor’s improves CAF’s rating

Standard & Poor's Global Ratings changed the outlook for the Development Bank of Latin America (CAF) to 'stable' and confirmed its global long- and short-term credit risk rating of 'AA-' and 'A-1+', respectively.

"We updated the outlook from 'negative' to 'stable' based on the consistent improvement of CAF's liquidity and capital indicators. The quality and quantity of CAF's liquid assets are such that, under our stress scenario, we would expect the bank to be able to settle its debt and maintain operations for a year without resorting to capital markets," the organization stated in a press release.

The risk rating agency also noted that CAF has substantial and consolidated market access, establishing the bank as a benchmark issuer in the global capital market.

"S&P's outlook improvement reflects the consistent reinforcement of CAF's financial structure due to the continued support from its shareholder countries through capital contributions, in addition to promptly fulfilling all of its obligations. This will allow us to continue channeling resources to Latin America under good conditions, in order to boost investments to improve the quality of life of local residents," said Luis Carranza, Executive President of the institution.

Ratification of the S&P rating and new outlook reflect investor confidence in CAF's debt securities, as shown by bond placements totaling approximately USD 5.500 million in 2016 and this year.