TEXT-S&P assigns FLAR A-plus long-term credit rtg

<a href=reuters.com>Reuters Mon April 14, 2003 03:33 PM ET (The following statement was released by the ratings agency)

NEW YORK, April 14 - Standard & Poor's Ratings Services said today that it assigned its 'A+' long-term and 'A-1' short-term credit ratings to Fondo Latinoamericano de Reservas (FLAR), Latin American Reserve Fund, whose primary goal is to assist and support the balance of payments of its member countries by granting them short- and medium-term loans. The outlook on the long-term ratings is stable.

"FLAR's ratings are supported by its active membership support, robust public policy role, and strong capital position," said credit analyst Richard Francis. "Its principal shareholders (the Republics of Bolivia, Colombia, Costa Rica, Ecuador, Peru, and the Bolivarian Republic of Venezuela) have consistently honored their obligations to the fund, even while encountering severe economic stress," he added.

According to Mr. Francis, FLAR's members are expected to continue providing it preferred creditor status going forward. "They support the institution because it stands ready to provide inexpensive unsecured dollar financing to member central banks at short notice for balance of payment support," Mr. Francis noted. "Standard & Poor's also expects FLAR to continue its success in expanding its membership beyond the Andean nations, as it has done recently with the accession of Costa Rica," he concluded. Complete ratings information is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com; under Fixed Income in the left navigation bar, select Credit Ratings Actions.