New York, July 18, 2013 -- Moody's Investors Service affirmed the Aaa senior ratings of financial
institutions -- Fannie Mae, Freddie Mac, the Federal
Home Loan Banks, and the Federal Farm Credit Banks -- that
Moody's consider to be directly linked to the rating of the US government.
Moody's has also affirmed the Aaa ratings of securities either guaranteed
by, backed by collateral securities issued by, or otherwise
directly linked to the US government or the aforementioned financial institutions.
These actions follow the affirmation of the Aaa rating assigned to the
US government. In conjunction with the revision of the US government's
rating outlook to stable, the rating outlooks for these directly
linked issuers have also been revised to stable.
Moody's also affirmed the Aa2 subordinated debt ratings of Fannie
Mae and Freddie Mac and the Aa3 long-term issuer rating of the
Farm Credit Bank of Texas.
Moody's also affirmed ratings assigned to certain directly-linked
US state and local Housing Finance Agency (HFA) bonds and revised their
rating outlooks from negative to stable.
The Aaa ratings assigned to pre-refunded municipal bonds,
to certain other state and local HFA bonds, and to municipal ratings
that benefit from credit support from the financial institutions directly
linked to the US government are maintained at Aaa. Moody's
ratings of these bonds do not carry outlooks.
RATINGS RATIONALE
These actions follow the move to a stable outlook on the Aaa government
bond rating of the US government, replacing the negative outlook
that has been in place since August 2011.
For a list of affected financial institutions directly linked to the US
government, see: http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_156491.
For a list of state and local HFA bonds with affected ratings and outlooks,
see: http://www.moodys.com/viewresearchdoc.aspx?docid=PBM_PBM156534.
These lists are an integral part of this press release and identify each
affected debt or sale.
For additional details on the US government rating, please refer
to the webpage containing all of Moody's related announcements at http://www.moodys.com/USRatingActions.
Further information on ratings indirectly linked to the US government
will be communicated to the market in the coming days.
The principal methodologies used in rating Federal Farm Credit Banks,
Farm Credit Bank of Texas (The), Federal Home Loan Banks,
Federal Home Loan Bank of Atlanta, Federal Home Loan Bank of Boston,
Federal Home Loan Bank of Chicago, Federal Home Loan Bank of Cincinnati,
Federal Home Loan Bank of Dallas, Federal Home Loan Bank of Des
Moines, Federal Home Loan Bank of Indianapolis, Federal Home
Loan Bank of New York, Federal Home Loan Bank of Pittsburgh,
Federal Home Loan Bank of San Francisco, Federal Home Loan Bank
of Seattle, Federal Home Loan Bank of Topeka was Global Banks Methodology
published in May 2013, and Government-Related Issuers:
Methodology Update published in July 2010.
The principal methodology used in rating Federal Home Loan Mortgage Corp,
Federal National Mortgage Association, Financing Corporation,
Private Export Funding Corporation, Resolution Funding Corporation,
Student Loan Marketing Association was Government-Related Issuers:
Methodology Update published in July 2010.
The rating actions on the state and local housing bonds represent a pass-through
of the US government bond rating, which is governed by the Sovereign
Bond Ratings Methodology published in September 2008.
Please see the Credit Policy page on www.moodys.com for
a copy of these methodologies.
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the rating action on the support provider and in relation to each particular
rating action for securities that derive their credit ratings from the
support provider's credit rating. For provisional ratings,
this announcement provides certain regulatory disclosures in relation
to the provisional rating assigned, and in relation to a definitive
rating that may be assigned subsequent to the final issuance of the debt,
in each case where the transaction structure and terms have not changed
prior to the assignment of the definitive rating in a manner that would
have affected the rating. For further information please see the
ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this rating action, and
whose ratings may change as a result of this rating action, the
associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
The below contact information is provided for information purposes only.
Please see the ratings tab of the issuer page at www.moodys.com,
for each of the ratings covered, Moody's disclosures on the
lead analyst and the Moody's legal entity that has issued the ratings.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Brian?Harris
Senior Vice President
Financial Institutions Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Robert?Franklyn?Young
MD - Financial Institutions
Financial Institutions Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Anne Van Praagh
MD - Chief Credit Officer Public Sector Ratings
Credit Policy
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's affirms Aaa ratings directly linked to US government bond rating; outlooks changed to stable