The Japan Credit Rating Agency (JCR) raised the credit rating of CAF -development bank of Latin America- from AA to AA+ with a stable outlook, the highest rating for a Latin American issuer. This rating action will allow CAF to consolidate the Institution's track record and financial management and provide better conditions for all its shareholders, contributing to the development and integration of its 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 it unanimously ratified a capital increase of 7 billion dollars, the highest capitalisation in the history of the multilateral organisation. The report also highlights the approval of the increase of CAF's authorised capital from $10 billion to $25 billion.
CAF's executive president, Sergio Díaz-Granados, said that this rating improvement is a significant endorsement of the institution's financial management, which will enable it to continue providing concrete responses to promote the welfare and development of projects that impact the people of all the countries where we operate. This new rating will allow CAF to respond more forcefully to its commitment to become the green bank and the bank of economic recovery, supporting central governments, private companies and civil society with the aim of reducing social gaps, creating quality jobs, generating economic development, access to technology and, above all, greater social cohesion.
The Japanese agency's report also highlights CAF's provision of emergency credit lines to address the pandemic, in the amount of 4.1 billion dollars to address the impact of COVID-19, as well as the rapid support to member countries by establishing a financial credit line for a total of 1.6 billion dollars for their national development banks and two liquidity lines for a total of 2.2 billion dollars for their health systems and services.
Similarly, the JCR report highly valued the incorporation of countries such as Costa Rica, El Salvador, Honduras and the Dominican Republic, which signed up to become full members of CAF, making the multilateral one of the largest financiers of development.