DULLES, VA--(Marketwired - Jan 21, 2015) - Standard & Poor's Ratings Services (S&P) has revised its outlook on the National Rural Utilities Cooperative Finance Corporation (CFC) to "stable" from "negative." S&P also affirmed its A and A-1 long- and short-term issuer credit ratings on CFC.
S&P initially issued the negative outlook based on revised rating methodologies for nonbank financial institutions announced in December. Following the announcement, CFC began taking steps to return the rating outlook to stable.
In revising the outlook, S&P cited CFC's recent collateral trust bond offering and an amendment of its revolving note purchase agreement with Farmer Mac. CFC amended its agreement with Farmer Mac to increase the total commitment amount by $600 million to $4.5 billion. The draw period also was extended by four years to January 2020.
"In our view, these actions mitigate the liquidity risks we pointed to when we revised our outlook on CFC to negative in December 2014 -- at the same time we updated our criteria for rating nonbank financial institutions," S&P said in announcing the stable outlook.
Moody's Investors Service's (Moody's) assessment of CFC remains unchanged. On Nov. 24, 2014, Moody's reaffirmed CFC's senior secured debt rating, senior unsecured debt rating, subordinate debt rating and short-term rating with a stable outlook.
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About CFC
The National Rural Utilities Cooperative Finance Corporation (CFC) is a nonprofit finance cooperative created and owned by America's electric cooperative network. With more than $22 billion in assets, CFC is committed to providing unparalleled industry expertise, flexibility and responsiveness to serve the needs of our member-owners. CFC is an equal opportunity provider and employer. Visit us online at www.nrucfc.coop.
