S&P Global Ratings recently upgraded CFC’s long-term issuer credit rating to "A" from "A-" with a stable outlook.
S&P raised CFC's debt ratings at the same time. The senior secured and senior unsecured debt ratings moved to "A" from "A-." The subordinated debt rating moved to "BBB+" from "BBB."
Why S&P Made the Change
S&P pointed to CFC's consistently strong credit performance, exceptional asset quality and prudent risk management. It specifically noted CFC's low-risk loan portfolio and minimal credit losses.
"We are extremely pleased with S&P's decision to upgrade our credit rating,” CFC Chief Executive Officer Andrew Don said. “This recognition reflects the strength of the cooperative business model, our disciplined approach to risk management and the exceptional credit performance of our member-owned electric cooperatives.”
We are extremely pleased with S&P's decision to upgrade our credit rating. This recognition reflects the strength of the cooperative business model, our disciplined approach to risk management and the exceptional credit performance of our member-owned electric cooperatives.
What the Change Means for Members
Don said the upgrade makes CFC financially stronger, which members see in the financing CFC can offer them.
"The upgrade reinforces CFC's financial strength,” he said. “Strong credit ratings give us dependable access to capital in all market conditions and at attractive pricing. We pass that value on to our members as reliable, cost-effective financing."