Corporacion Andina de Fomento upgraded To ‘AA-/A-1+’ on strengthened capital position; outlook positive

Overview We believe Corporacion Andina de Fomento (CAF) will maintain its capital position, particularly following the recent approval of its 10th capital increase of US$7 billion–the largest in its history–which will be fully paid-in CAF’s capital benefited from key borrowers coming out of default, combined with the gradual reduction in Venezuela’s outstanding balance via a share repurchase At the same time, CAF’s policy importance remains strong, with an attractive value proposition evidenced by current shareholders increasing their participation and new members joining the We therefore raised our ratings on CAF to ‘AA-/A-1+’ from ‘A+/A-1’. The positive outlook reflects our view that CAF’s role, policy importance, and capital can strengthen partly based on significant capital support from shareholders, which could more […]

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The global tourism industry is set to reach, and possibly surpass, pre-pandemic levels by the end of 2024, according to the World Economic Forum (WEF). Five years post-COVID-19, the sector is experiencing a robust resurgence driven by a surge in international travel, improved air connectivity, and strong rebounds in key regions. However, global dynamics must be managed carefully to ensure stable and continuous growth. In 2023, international tourism reached 88% of its 2019 levels, a significant recovery favored by the reopening of Asian markets, as highlighted by the United Nations World Tourism Organization (UNWTO). The Middle East led the way, surpassing pre-pandemic levels by around 20%, with Europe, the Americas, and Africa following close behind at approximately 90% of their […]