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CFC Releases Initial Results from 2010 Key Ratio Trend Analysis


For Release: May 12, 2011

Contact: Brad Captain

HERNDON, Va.—The National Rural Utilities Cooperative Finance Corporation (CFC) (NYSE: NRU, NRC) announced preliminary results from its Key Ratio Trend Analysis (KRTA), an annual assessment of financial trends among electric distribution cooperatives nationwide.

“The majority of electric distribution cooperatives across the country have reported 2010 financial results, and these preliminary numbers show that co-ops had a strong year despite the economic recovery being slower than hoped for,” said Rich Larochelle, CFC senior vice president, Corporate Relations.

The preliminary KRTA report is based on data submitted by 648 electric cooperatives for the year ending December 31, 2010, as compared to results for the same cooperatives from last year’s KRTA. Key points include:

  • Cooperative financial ratios improved. The median times interest earned ratio (TIER), which measures the ability to generate earnings adequate to meet interest payments on long-term debt, increased to 2.42 from the previous year’s 2.27. The modified debt service coverage (MDSC) ratio, which measures a system’s ability to cover principal and interest payments, increased to 1.91 from 1.83 in 2009. Equity as a percentage of assets rose by 93 basis points to 41.38 percent.
  • Electricity sales increased. Growth in kilowatt-hours sold increased substantially, from a loss of 1.25 percent in 2009 to a 5.06-percent increase
    in 2010.
  • Consumer payments remained reliable. Despite the weak economy, electric cooperative members continued to pay electric bills at the same rate as the previous year. In 2010, overdue bills and amounts written off as a percentage of operating  revenue maintained levels less than one-quarter
    of 1 percent.

The final KRTA report, which will include data from approximately 820 electric distribution cooperatives, will be available by August 2011.

About CFC

The National Rural Utilities Cooperative Finance Corporation (CFC) is a nonprofit cooperative that provides capital and industry-leading financial products to the nation’s rural utility systems. With more than $20 billion in assets, CFC is committed to providing unparalleled industry expertise, flexibility and responsiveness to serve the needs of its member-owners.

About KRTA

CFC developed the KRTA in 1975 to help electric cooperative managers and board members analyze a complete picture of their system’s performance as compared to national median numbers (medians are used as opposed to averages, which can be skewed by extreme responses on the high or low end). The KRTA is based on unaudited data reported by electric distribution cooperatives to the Rural Utilities Service and CFC.


Press Contact:

All media inquiries are directed to:

Brad Captain
Vice President, Corporate Communications
703-467-1800 or 800-424-2954