December 03, 2012 16:19 ET
Moody's Affirms CFC's Ratings, 'Stable' Outlook
DULLES, VA--(Marketwire - Dec 3, 2012) - Moody's Investors Service (Moody's) has maintained its "stable" rating outlook and affirmed its debt ratings of the National Rural Utilities Cooperative Finance Corporation (CFC) (
"Moody's outlook reflects the financial stability -- even in uncertain economic times -- of both CFC and the electric cooperative network it serves," CFC CEO Sheldon C. Petersen said. The affirmation follows a stable rating outlook for CFC issued by Standard & Poor's Ratings Services in October.
In its assessment, the credit rating agency noted CFC's electric cooperative-focused loan portfolio, its market position and its diversity of funding sources as strengths.
"The A2 senior unsecured debt rating of [CFC] reflects its consistently high-quality asset portfolio and its unique market position as the dominant lender to electric distribution cooperatives," Moody's said. "We view the electric distribution segment, [CFC's] principal lending market, to be among the least volatile across the electric sector..."
At the close of the first quarter of its fiscal year 2013 (Aug. 31, 2012), 97 percent of CFC's $19.5 billion in gross loans to members were to rural electric systems, with 73 percent to electric distribution cooperatives.
CFC Ratings Affirmed:
Outlook: Stable
Senior Secured: A1
Senior Unsecured: A2
Subordinated: A3
Commercial Paper: P-1
The ratings discussed have the meanings assigned to them by the rating agency and are not recommendations to buy, sell or hold securities. They are subject to revision at any time by the rating agency.
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 approximately $20 billion in assets, CFC is committed to providing unparalleled industry expertise, flexibility and responsiveness to serve the needs of its member-owners. CFC can be found online at [ www.nrucfc.coop ].