The increase in CAF’s rating by the Japan Credit Rating Agency (JCR) adds to the improvement of the rating made by Standard and Poor’s in June of this year.
The risk rating agency Japan Credit Rating (JCR) raised the credit rating of CAF -development bank of Latin America- from AA to AA+ with a Stable outlook, this being the highest rating of a Latin American issuer. This rating will allow CAF to consolidate the record and financial management of the Institution and provide better conditions for all their shareholders, contributing to the development and integration of the member countries.
According to JCR, CAF’s credit rating is based on the solid support provided by its member countries, which was evidenced last March during the Extraordinary Shareholders’ Meeting when unanimously ratified a capital increase of USD 7.000 million capital increase. the highest capitalization in the entire history of the multilateral organization. The report also highlights the approval of the increase in CAF’s authorized capital, from the amount of USD 10.000 million to USD 25.000 million.
CAF’s Executive President, Sergio Díaz-Granados, pointed out that this rating upgrade represents important support for the institution’s financial management, which will allow to continue providing concrete responses to promote well-being and the development of projects that have an impact on people from all the countries where we maintain operations. This new rating will allow CAF to have more powerful responses to the commitment to become the green bank and the economic recovery by supporting central governments, private companies and civil society with the goal of reducing social gaps, creating quality jobs, generate economic development, access to technology and, above all, have greater social cohesion.
The Japanese agency’s report also highlights the contribution of emergency lines of credit by CAF to address the pandemic, for the amount of USD 4.100 million to mitigate the impact of COVID-19, as well as the swift support to member countries by establishing a financial credit line of USD 1.600 million for its national development banks and two liquidity lines totaling USD 2.200 million for its health systems and services.
Also, the JCR report highly valued the incorporation of countries such as: Costa Rica, El Salvador, Honduras and the Dominican Republic, who signed their incorporation to become full members of CAF, which constitutes the multilateral as one of the largest development financiers.