| For Immediate Release October 16, 2009 |
For more information, contact: Stan Ray, Vice President Marketing and Corporate Relations (512) 465-0577 |
Fitch Affirms ‘AA-’ Long-Term Issuer Rating of
Farm Credit Bank of Texas
AUSTIN, Texas – Fitch Ratings has affirmed the long-term and short-term Issuer Default Rating (IDR) of Farm Credit Bank of Texas (FCBT) at ‘AA-’ and ‘F1+’ respectively. The rating outlook is stable.
“The rating action reflects continued stable operating performance, a manageable increase in loan delinquency, and conservative liquidity and capital management,” Fitch Ratings stated in early October. “The stable outlook reflects Fitch’s view of FCBT’s ability to manage through the current and anticipated stress resulting from economic conditions and weakness in several specific agricultural industries.”
Fitch noted that the bank, which is part of the Farm Credit System, enjoys substantial benefits because of its ability to access capital markets through a government-sponsored enterprise (GSE) channel. The bank is also active in the capital markets arena, participating in large loan opportunities in the food, agribusiness, rural communications and energy sectors.
Farm Credit Bank of Texas is one of five wholesale banks in the Farm Credit System, which is the nation’s oldest and largest source of financing for agriculture, agribusiness and rural real estate. A GSE, the System was created by Congress in 1916 to be a reliable source of credit and liquidity to the U.S. agricultural community.
The five banks jointly own the Federal Farm Credit Banks Funding Corporation, which acts as their agent in the issuance of Federal Farm Credit Banks’ consolidated Systemwide debt. Despite the turmoil in the financial system, the Funding Corporation has never lost access to capital markets and has maintained the ability to fulfill daily liquidity needs.
Fitch Ratings also recently affirmed the long- and short-term IDR of the Farm Credit System and the Federal Farm Credit Banks consolidated system debt obligations at ‘AAA’ and ‘F1+’ respectively. The rating outlook is stable.
Additional information is available at www.fitchratings.com.