Research Update: CoBank 'AA-' Rating Affirmed And U.S. AgBank Ratings Withdrawn Following Merger Jan 12
- Language: English
- Published: January 2012
- Region: United States
Important role as a government-sponsored enterprise (GSE) lender to the U.S. agricultural/rural sector Consolidated debt issued as joint and several liability Dedicated $2.7 billion insurance fund Consistently strong profitability Conservative risk-adjusted capitalization and low funding costs Loan concentration to the agricultural sector Legislative risks reducing U.S. government support for agriculture The 'AAA/A-1+' ratings on the consolidated debt obligations issued by the Farm Credit System Banks (FCSB) reflect the benefits the System receives as a GSE, the joint and several liability on issued debt, the dedicated insurance fund providing further protection against default, and the combined strong overall financial profile of its banks and related associations, including their consistently strong profitability, conservative risk-adjusted capitalization, and low funding costs. Offsets to these...
Companies mentioned in this report are:
- Farm Credit System Banks
- CoBank ACB
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Research Type: Full Analysis