Market Overview

Fitch Expects to Rate Inter-American Investment Corp's EMTN Program 'AAA'

NEW YORK--(BUSINESS WIRE)--

Fitch Ratings expects to rate Inter-American Investment Corporation's (IIC) upcoming Euro Medium-Term Note Program (EMTN) and the three-year USD300 million notes (FRN)'AAA'.

The maximum aggregate principal amount of the notes outstanding at any time under the initial EMTN program will not exceed USD1 billion (or its equivalent). Maturity for the notes will be specified in the relevant pricing supplement. All notes issued under the program will constitute senior unsecured debt obligations of the issuer.

For the USD300 million FRN due November 2015, interest payments will be made quarterly until maturity. The notes will carry a variable-rate interest rate based on three-month USD LIBOR plus a spread to be set at the time of issuance. The final rating will be contingent upon receipt of final documents conforming to the information already received.

The ratings primarily reflect the IIC's intrinsic strengths, which include its strong capitalization, high liquidity, financially sustainable operations as well as shareholder support. Additionally, the IIC benefits from its relationship with the Inter-American Development Bank through a committed credit line for USD300 million and the 'preferred creditor status' historically accorded to the IIC by member countries. The IIC's relationship to other IADB Group entities, in terms of common shareholders and common members of its Board of Governors and Board of Executive Directors also underpin its ratings.

IIC will use the proceeds from the planned issuance for general business purposes. Although leverage is expected to increase, it will remain well below that of its similarly rated supranational peers.

Fitch currently rates IIC as follows:

--Long-term Issuer Default Rating (IDR) 'AAA'; Stable Outlook;

--Short-term IDR 'F1+'.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Rating Multilateral Development Banks', May 23, 2012.

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.

Fitch Ratings
Primary Analyst:
Theresa Paiz Fredel
Senior Director
One State Street Plaza
New York, NY 10004
Theresa.paiz@fitchratings.com
or
Secondary Analyst:
Diego Alcazar
Director
diego.alcazar@fitchratings.com
or
Committee Chairperson:
Eric Paget-Blanc, +33-1-4429-9133
Senior Director
or
Media Relations:
Elizabeth Fogerty, New York, +1 212-908-0526
elizabeth.fogerty@fitchratings.com

 

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