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Fitch Rates Corporacion Andina de Fomento's JPY Bonds 'A+'.

NEW YORK -- Fitch Ratings has assigned an 'A+' Long-term debt rating to the JPY10billion bonds due June 30, 2015, under Corporacion Andina de Fomento's (CAF)USD100billion Retail Target Samurai Bond Program.

CAF will use the net proceeds for general corporate purposes, including but not limited to funding its lending operations. Following the settlement of this offering, the total amount of bonds outstanding under the Retail Target Samurai Bond Program will reach JPY24.4billion.

CAF's ratings reflect the privileges conferred on it by its member countries, its adequate capital base and its solid track record in terms of asset quality and self-sustainable profitability. The ratings are limited by economic volatility in some of the countries in which the institution operates, the member countries' creditworthiness relative to higher rated multinational development banks (MDBs) and, although decreasing, relevant loan concentrations. CAF has been able to operate without difficulty in successive periods of instability in the region due to a conservative operating policy and the member countries' support.

CAF's shareholders are mostly governments and public agencies. The shareholders have demonstrated strong support with continuous capital contributions to sustain CAF's expansion, while regular privileges and immunities are provided similar to other MDBs. As CAF is one of the few providers of long- and medium-term financing to the region, Fitch considers that its shareholders have a vested interest in supporting it should it be required. However, some doubts remain concerning their ability to provide such support given the mostly sub-investment grade ratings of its shareholders.

CAF is an MDB established in 1968 to assist in the economic development of its member countries. CAF is headquartered in Caracas, Venezuela. It focuses on providing medium- and long-term project loans and trade finance. At YE 2010 CAF was 85% owned by the Andean countries (Bolivia, Colombia, Ecuador, Peru and Venezuela), Brazil, Panama and Uruguay. The remaining stake belongs to a number of non-regional member states and 14 private-sector banks.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Available Research:

--'Rating Multilateral Development Banks and Other Supranationals' (March 18, 2010).

Applicable Criteria and Related Research:

Rating Multilateral Development Banks and Other Supranationals

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=504966

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.
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Publication:Business Wire
Geographic Code:1U2NY
Date:Jun 21, 2011
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