Research Update: CoBank 'AA-' Rating Affirmed And U.S. AgBank Ratings Withdrawn Following Merger Jan 12
- Language: English
- Published: January 2012
- Region: United States
Membership in the Farm Credit System, a government-sponsored enterprise Conservative credit risk policies and management Solid risk-adjusted capitalization Low-cost funding The System's limitation on the bank's business to serving mainly the agricultural and rural sectors Vulnerability of the agricultural sector to cyclical downturns Standard & Poor's Ratings Services' 'AA-' rating on CoBank ACB reflects our view on the extraordinary government support we believe CoBank would likely receive as a member of the Farm Credit System (the System; AAA/Stable/A-1+), a government-sponsored enterprise (GSE), in a distressed scenario. The rating also reflects CoBank's conservative credit risk policies and management, solid risk-adjusted capital, and low-cost funding advantages as a System member. These rating strengths are partially offset by its limitation, as a member...
Companies mentioned in this report are:
- CoBank ACB
- Farm Credit System Banks
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis