SOURCE: National Rural Utilities Cooperative Finance Corporation (NRUCFC)

National Rural Utilities Cooperative Finance Corporation (NRUCFC)

October 21, 2010 17:08 ET

Moody's Affirms CFC's Ratings; Outlook Remains Stable

HERNDON, VA--(Marketwire - October 21, 2010) -  Moody's Investors Service announced October 20, 2010, that it has maintained CFC's stable rating outlook and affirmed all the ratings of National Rural Utilities Cooperative Finance Corporation (CFC) (NYSE: NRU) (NYSE: NRC) as listed below.

In addition, Moody's assigned a (P)A1 rating to the shelf registration for CFC's issuance of senior secured collateral trust bonds.

"We are pleased that Moody's recognizes the financial strength of CFC and its members -- America's electric cooperatives," said CFC CEO Sheldon C. Petersen.

In its October 20 news release 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... ."

Moody's cited a number of factors that influenced its decision: the strength of CFC's loan portfolio; the investment in CFC of $398 million over the past two years by CFC's electric cooperative members; and the fact that CFC's adjusted leverage is on an improved trend.

"Moody's reaffirmation of our debt ratings and stable outlook reflect the long-term steps CFC is taking to maintain its financial strength, particularly in the areas of liquidity and leverage," said Andrew Don, CFC senior vice president and treasurer.

CFC Ratings Affirmed by Moody's
Senior Secured Debt: A1
Senior Unsecured Debt: A2
Subordinate Debt: A3
Short-term Debt: Prime-1

About CFC

National Rural Utilities Cooperative Finance Corporation (CFC) is a non-governmental cooperative that provides capital and industry-leading financial products to the nation's rural utility systems. With more than $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.

Contact Information

  • Contacts:
    Brad Captain
    Corporate Communications
    703-709-6725
    Email Contact

    Ling Wang
    Banking & Investor Relations
    703-709-2053
    Email Contact