Multilateral development bank Corporación Andina de Fomento, or CAF, continues to have enough cushion to offset the continued payment delays from Venezuela, Fitch Ratings said.

However, Fitch expects a negative impact on CAF's rating should its exposure to Venezuela reaches nonaccrual status, as this would hit its asset quality and dampen CAF's preferred creditor status.

The rating agency believes Venezuela's payment delays will become more frequent over the near term due to falling oil production and current sanctions that affect the sovereign's capacity to liquidate assets and transfer money. The rating agency continues to regard Venezuela as having a strong willingness to pay CAF, but it is worried about the country's increasing capacity constraints given its economic, political and social crisis.

Still, Fitch still evaluates CAF as having "excellent" overall solvency and liquidity, which provides a strong buffer to face Venezuela's payment delays.