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
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Research Type: Full Analysis