For Release: October 01, 2010
Contact: Ling Wang, Capital Market Relations
HERNDON, VA—Standard & Poor’s Ratings Services (S&P) improved its outlook on National Rural Utilities Cooperative Finance Corporation (CFC) (NYSE: NRU, NRC) to “stable” from “negative” on Sept. 30, 2010. S&P also reaffirmed all CFC’s ratings, as listed below.
“The quality of CFC’s loan portfolio is reflected by the tremendous resilience electric cooperatives have displayed during the economic downturn,” said Sheldon C. Petersen, CFC governor and CEO. “As S&P’s revised outlook reflects, we are well positioned to meet the needs of our members through a growing number of financial products.”
The agency highlighted that CFC has improved leverage, as measured by its debt-to-equity ratio, by strengthening its equity base. CFC’s ability to borrow through private debt issuances and extensive revolving credit facilities was noted as an additional positive factor. S&P also lauded CFC members’ increasing investment in the organization as further strengthening its financial position.
“The affirmation recognizes our view of CFC’s continued strong market position as one of the premier lenders to the rural utility sector, the important role it plays in providing financing to the otherwise underserved rural electric and telephone industries, and its continued strong support from members,” S&P said in its release.
CFC Ratings Affirmed
Senior Secured: A+
Senior Unsecured: A
Commercial Paper: A-1
National Rural Utilities Cooperative Finance Corporation (CFC) is a non-governmental 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.
Standard & Poor’s Ratings Services, a business of Standard & Poor’s Financial Services, LLC, is a Nationally Recognized Statistical Rating Organization as determined by the U.S. Securities and Exchange Commission. The ratings listed above have the meanings assigned to them by the rating agency and are not recommendations to buy, sell or hold securities and are subject to revision or withdrawal at any time.