Standard & Poor’s improves CAF’s rating
S&P Global Ratings changed the outlook for the Development Bank of Latin America (CAF) to 'stable' due to improvements in the capital and liquidity indicators, as well as its corporate governance and administration
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.
CAF's more recent content
Latin America and the Caribbean seek a regional brand
CAF - development bank of Latin America and the Caribbean - aims to generate new opportunities for the countries of the region through greater international projection that attracts investment, cooperation and tourism, among others.
CAF doubles its Caribbean shareholder countries
Continuing to deepen its engagement with CARICOM countries, CAF – Development Bank of Latin America and the Caribbean – convened a meeting with CARICOM Ministers of Finance during the WB-IMF Spring Meetings in Washington DC to advance the process for incorporating its three new Caribbean shareholder countries – Bahamas, Dominica and Grenada – into the financial institution.