Monday, May 16

Fitch upgrades the outlook for the development bank of Latin America (CAF) to ‘positive’

Fitch credit rating agency has improved the outlook development bank of Latin America (CAF) to ‘positive’ and has ratified the long-term rating of ‘A+’ and the short-term rating of ‘F1+’.

The agency sees an improvement in CAF’s solvency, as a result of a capital increase of $7,000 million (6,160 million euros) recently approved and a favorable dynamics of the loan portfolio.

Despite the recent deterioration in Latin America’s sovereign ratings, capital contributions from CAF shareholders will support the credit expansion and diversification of the bank’s portfolio in the coming years, while maintaining excellent capitalization indicators,” the rating agency maintains in its report.

CAF’s executive president, Sergio Díaz-Granados, has highlighted that These new qualifications “will allow us to offer a more forceful response to promote the well-being of Latin Americans and Caribbean, promote social and economic reactivation, be the green bank in the region and lead the digital transformation that will make us more competitive”.

The process of conversion to full members of CAF from Mexico, Costa Rica and the Dominican Republic, like the incorporation of El Salvador, has also been highlighted by the risk rating agency.

Fitch has also highlighted the bank’s capitalization and liquidity indicators, as well as its history as a creditor bank and the role played during the pandemic to face the impacts derived from the coronavirus.