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For Immediate Release
June 19, 2008

AUSTIN, Texas –The $13.7-billion Farm Credit Bank of Texas (FCBT) has received an ‘AA-’ long-term issuer default rating (IDR), with a Stable Rating Outlook, from Fitch Ratings. Concurrent with this rating action, Fitch assigned an 'A' to the bank’s $200 million of preferred stock.

Fitch Ratings, a leading global rating agency, announced June 18 that it had assigned the following ratings with a Stable Outlook to the Farm Credit Bank of Texas.

• Long-term Issuer Default Rating (IDR) at 'AA-';
• Short-term IDR at 'F1+';
• Preferred Stock 'A';
• Support at '1';
• Support Floor at 'A-'.

“We are extremely pleased with this latest rating from Fitch,” said Larry Doyle, FCBT chief executive officer. “Coming at a time of volatility in the financial markets, this rating illustrates the stability and strength that Farm Credit Bank of Texas offers to investors.”

Headquartered in Austin, the Farm Credit Bank of Texas provides funds and services to 20 rural lending cooperatives in Alabama, Louisiana, Mississippi, New Mexico and Texas and to five Other Financing Institutions. The bank is also active in the capital markets arena, participating in large loan opportunities in the food, agribusiness, rural communications and energy sectors.

Fitch stated that the rating reflects the Farm Credit Bank of Texas’ sound financial profile, steady profitability and stable trends in asset quality. It also 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. 

“FCBT has adopted prudent risk management and corporate governance standards. Strong credit underwriting and risk monitoring has also resulted in excellent asset quality. Future ratings actions rely on the System’s continued GSE status and continued political support,” Fitch Ratings stated.

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 provide a reliable source of credit and liquidity to the U.S. agricultural community.