Moody's Affirms CFC's Ratings; Outlook Remains Stable
November 24 2009 - 7:02PM
Marketwired
Moody's Investors Service announced today that it has affirmed the
ratings of National Rural Utilities Cooperative Finance Corporation
(CFC) (NYSE: NRU) (NYSE: NRN) (NYSE: NRC) and maintained CFC's
Stable Rating Outlook.
Moody's ratings of CFC are as follows:
-- Senior Secured Debt: A1
-- Senior Unsecured Debt: A2
-- Subordinated Debt: A3
-- Short-term Debt: Prime-1
"We are pleased that Moody's recognizes the sound financial
position of CFC and its members," said CFC's CEO Sheldon C.
Petersen.
In its news release today on CFC, Moody's said, "A core element
of NRUC's [CFC] credit strength is the durability of its loan
portfolio as the dominant secured lender to electric distribution
cooperatives. Moody's views this segment as being low risk and
capable of producing highly predictable cash flows due to most
cooperative's monopoly position as well as the cooperative's
ability to pass along most cost increases to its electric
customers."
Moody's cited a number of factors driving its decision,
according to CFC's CFO Steven L. Lilly. "Moody's pointed to (1) the
strength of our loan portfolio; (2) our ability to weather the
recent upheaval in the capital markets; and (3) the investment by
the electric cooperatives in CFC over the past year through Member
Capital Securities (MCS). As of today, these MCS investments by our
members totaled almost $360 million, and combined with other
factors have put CFC's adjusted leverage on an improved trend,"
Lilly said.
About CFC
National Rural Utilities Cooperative Finance Corporation (CFC)
is a cooperative that serves the nation's rural utility systems.
With more than $20 billion in assets, CFC provides its
member-owners with an assured source of market-priced capital and
financial products and services. CFC can be found online at
nrucfc.org.
This press release contains "forward-looking statements" within
the meaning of the Securities Act of 1933, as amended, and the
Exchange Act of 1934, as amended. Although we believe that the
expectations reflected in such forward-looking statements are based
on current reasonable assumptions, actual results and performance
could differ materially from those set forth in the forward-looking
statements due to a variety of known and unknown factors.
Factors that could cause future results to vary from current
expectations include, but are not limited to, general economic
conditions, legislative changes, governmental monetary and fiscal
policies, changes in tax policies, changes in interest rates,
interest expense, demand for our loan products, changes in the
quality or composition of our loan and investment portfolios,
changes in accounting principles, policies or guidelines, and other
economic and governmental factors affecting our operations.
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Contact: Mike O'Brien Corporate Communications 703-709-6709
Email Contact Andrew Don Capital Market Relations 703-709-6869
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