{"id":452104,"date":"2021-03-05T19:11:09","date_gmt":"2021-03-06T00:11:09","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=452104"},"modified":"2021-03-05T19:11:09","modified_gmt":"2021-03-06T00:11:09","slug":"sp-global-ratings-issues-downgrade-and-revised-outlook-on-cfc","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/sp-global-ratings-issues-downgrade-and-revised-outlook-on-cfc\/","title":{"rendered":"S&P Global Ratings Issues Downgrade and Revised Outlook on CFC"},"content":{"rendered":"
\n

\n \u201cWe are disappointed in S&P\u2019s decision, which is based largely on speculation related to the future of Texas energy markets.\u201d \u2014 CFC CFO J. Andrew Don<\/em>\n <\/p>\n

DULLES, Va., March 05, 2021 (GLOBE NEWSWIRE) — The National Rural Utilities Cooperative Finance Corporation (CFC) announced that S&P Global Ratings (S&P) issued a downgrade on the organization\u2019s secured and unsecured debt, while revising its outlook to \u201cnegative\u201d based on the potential for elevated credit stress posed by electric utilities operating in Texas following last month\u2019s winter storm that resulted in blackouts and\u00a0unprecedented power costs throughout the state.<\/p>\n

Based on CFC\u2019s lending to rural electric cooperatives in Texas, which amounts to 15 percent of its outstanding loans, S&P downgraded the organization\u2019s long-term issuer credit, senior secured and senior unsecured debt ratings to \u201cA-\u201c from \u201cA,\u201d subordinated debt rating to \u201cBBB\u201d from \u201cBBB+\u201d and short-term issuer credit and commercial paper ratings to \u201cA-2\u201d from \u201cA-1.\u201d The outlook is now negative.<\/p>\n

\u201cWe are disappointed in S&P\u2019s decision, which is based largely on speculation related to the future of Texas energy markets,\u201d said CFC Senior Vice President and CFO J. Andrew Don. \u201cCFC\u2019s financial and market performance has been strong over the years.\u201d<\/p>\n

S&P itself noted the strength of CFC\u2019s underwriting and historical loss experience and further highlighted its belief that the organization has adequate funding and liquidity: \u201cOur ratings on CFC reflect in our view, its unique business position in financing its rural electric utility members, adequate capitalization, historically strong asset quality, adequate funding and liquidity, as well as access to funding from the Federal Financing Bank, Farmer Mac and member subordinated debt, which is subordinate to all other debt issues.\u201d<\/p>\n

\u201cCFC remains strong and well capitalized,\u201d said CFC CEO Sheldon Petersen.<\/p>\n

He added: \u201cThe fact that electric cooperatives continue to distribute power to their members, despite the aftermath of last month\u2019s storms, demonstrates the resilience of the consumer-focused electric cooperative business model and their ability to provide safe, reliable and sustainable power.\u201d<\/p>\n

\n About CFC<\/strong>
\n
Created and owned by America\u2019s electric cooperative network, the National Rural Utilities Cooperative Finance Corporation (CFC)\u2014a nonprofit finance cooperative with more than $28 billion in assets\u2014provides unparalleled industry expertise, flexibility and responsiveness to serve the needs of our member-owners. CFC is an equal opportunity provider. Visit us online at www.nrucfc.coop<\/a>.<\/p>\n\n\n\n
\n Contact:<\/strong>\n <\/td>\n\u00a0 \u00a0<\/td>\n\n Brad Captain<\/strong>
\n
Corporate Relations
publicrelations@nrucfc.coop
800-424-2954<\/td>\n		\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/td>\n\n Ling Wang<\/strong>
\n
Banking & Investor Relations
investorrelations@nrucfc.coop
800-424-2954<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n


\n
\n \n <\/div>\n

<\/div>\n","protected":false},"excerpt":{"rendered":"

\u201cWe are disappointed in S&P\u2019s decision, which is based largely on speculation related to the future of Texas energy markets.\u201d \u2014 CFC CFO J. Andrew Don DULLES, Va., March 05, 2021 (GLOBE NEWSWIRE) — The National Rural Utilities Cooperative Finance Corporation (CFC) announced that S&P Global Ratings (S&P) issued a downgrade on the organization\u2019s secured and unsecured debt, while revising its outlook to \u201cnegative\u201d based on the potential for elevated credit stress posed by electric utilities operating in Texas following last month\u2019s winter storm that resulted in blackouts and\u00a0unprecedented power costs throughout the state. Based on CFC\u2019s lending to rural electric cooperatives in Texas, which amounts to 15 percent of its outstanding loans, S&P downgraded the organization\u2019s long-term issuer credit, … <\/p>\n

Continue reading “S&P Global Ratings Issues Downgrade and Revised Outlook on CFC”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-452104","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"\nS&P Global Ratings Issues Downgrade and Revised Outlook on CFC - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/sp-global-ratings-issues-downgrade-and-revised-outlook-on-cfc\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"S&P Global Ratings Issues Downgrade and Revised Outlook on CFC - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"\u201cWe are disappointed in S&P\u2019s decision, which is based largely on speculation related to the future of Texas energy markets.\u201d \u2014 CFC CFO J. Andrew Don DULLES, Va., March 05, 2021 (GLOBE NEWSWIRE) — The National Rural Utilities Cooperative Finance Corporation (CFC) announced that S&P Global Ratings (S&P) issued a downgrade on the organization\u2019s secured and unsecured debt, while revising its outlook to \u201cnegative\u201d based on the potential for elevated credit stress posed by electric utilities operating in Texas following last month\u2019s winter storm that resulted in blackouts and\u00a0unprecedented power costs throughout the state. 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