Moody's on March31 upgraded the issuer and senior unsecured ratings of Washington-based toAa1, and changed the outlook to stable from positive.

One of the keydrivers of the ratings upgrade, according to the rating agency, is the evidenceof increased member support following the board of governors' decision to consolidatethe Inter-American Development BankGroup private sector operations at the company and the capital subscription process.

Moody's alsoexpects Inter-American Investment Corp. to expand its operations over the next fiveyears, and that the company's intrinsic financial strength metrics "will remainvery strong relative to Aaa- and other Aa1-rated multilateral development banks."

The stable outlookreflects Moody's view that the company "will continue to effectively managecredit risks emerging from a sometimes challenging operational environment presentin countries where it carries out its lending and investment activities."