Medellin-based credit union Cooperativa Financiera de Antioquia (CFA) revealed this month in a filing with Colombia’s Superfinanciera regulatory agency that it won a favorable AA rating for long-term debt from Bogota-based debt rater Value & Risk Rating (VRR).

CFA also won a favorable “VrR1” rating from VRR for short-term debt risk, according to the filing.

The filing, posted by the Superintendencia on December 10, shows that CFA’s net income through August 2018 rose to COP$4.77 billion (US$1.5 million), up from COP$3.99 billion (US$1.26 million) for the same period in 2017.

“The AA rating indicates a high capacity to pay interest and return capital, with a limited incremental risk compared to other entities or rated issues with the highest category,” according to VVR.

“On the other hand, the rating VrR1 corresponds to the highest category in investment grade, which indicates that the entity [CFA] enjoys a high probability in the payment of the obligations in the agreed terms and terms. The liquidity of the institution and the protection for third parties is good. Additionally, the ability to pay will not be affected by changes in the sector or the economy,” VVR added.

Among credit unions, CFA, founded in the year 2000, is ranked fourth by level of assets among the five financial cooperatives of Colombia, VVR noted.

The company mainly caters to lower-income and middle-income clients (strata 1, 2 and 3 in Colombia’s system of income rankings) and has most of its business here in Antioquia.

CFA has 10 main offices, 498 employees, and 68 correspondent offices in seven Colombian departments (states), and continues to expand throughout Colombia.

In total, 85% of the loan portfolio typically goes to salaried employees, commerce, transport and agriculture, according to the filing. The top-20 loan clients represented just 4.27% of the total portfolio, the filing shows.

During 2019, CFA plans to start-up the second phase of its cell-phone-based “Mobile channel,” which seeks to expand the transactional portfolio; complete the modernization and optimization of its “virtual office” platform; and continue with the development of its “Networks” project, according to the filing.