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 […]