Fitch Affirms Federal Home Loan Bank Atlanta at 'AAA'; Outlook Stable

NEW YORK--()--Fitch Ratings has affirmed the Federal Home Loan Bank of Atlanta's (FHLBATL) 'AAA' long-term Issuer Default Rating (IDR). The Rating Outlook is Stable. FHLB's Viability Rating (VR) is unaffected by today's action. A complete list of ratings follows at the end of this release.

These rating actions follow Fitch's affirmation of the U.S. Government's 'AAA' IDR on March 21, 2014, while also removing the Rating Watch Negative and assigning a Stable Outlook to the sovereign's ratings.

KEY RATING DRIVERS - IDR, SUPPORT RATING & SUPPORT RATING FLOOR

The IDR and Support Rating Floor (SRF) of FHLBATL are directly linked to the U.S. sovereign rating and will continue to move in tandem. Fitch believes that implicit sovereign support for the FHLB System would be forthcoming due to its important mission as it pertains to homeownership, serving as a source of liquidity to its members and the wide global distribution of FHLB debt.

As evidenced in the significant increase in consolidated obligations and advances during 2007 and 2008, the FHLB System provided much needed liquidity to its banking members, made possible by its access to the capital markets by virtue of its government-sponsored entity (GSE) status. FHLBATL's outstanding advances have since come down significantly and were $89.6 billion at Dec. 31, 2013, compared to $142.9 billion at Dec. 31, 2007.

FHLBATL's Support and SRF reflect Fitch's view that sovereign support would extend to FHLBATL and its consolidated obligations. Consequently, FHLBATL's long-term IDR is reflective of implicit sovereign support.

RATING SENSITIVITIES - IDR, SUPPORT RATING & SUPPORT RATING FLOOR

The ratings of FHLBATL are directly linked to the U.S. sovereign rating and will continue to move in tandem. If at some point in the future, Fitch views government support as being reduced, the ratings of the GSEs may be delinked from the sovereign and downgraded.

Deterioration in FHLBATL's available liquidity and/or inability to access capital markets over an extended period may result in negative rating actions, irrespective of the U.S. sovereign rating.

Fitch has affirmed the following ratings:

Federal Home Loan Bank of Atlanta

--Long-term IDR at 'AAA'; Outlook Stable;

--Short-term IDR at 'F1+';

--Support at '1';

--Support Rating Floor at 'AAA'.

The following rating is unaffected:

--Viability Rating of 'bbb+'.

Additional information is available 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Financial Institutions Rating Criteria' (Jan. 31, 2014);

--'Rating Criteria for Banking Structures Backed by Mutual Support Mechanisms' (Dec. 18, 2013);

--'Rating Linkages to the U.S. Sovereign Rating' (July 18, 2011);

--'Fitch Affirms United States at 'AAA'; Outlook Stable' (March 21, 2014).

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=732397

Rating Criteria for Banking Structures Backed by Mutual Support Mechanisms

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=695715

Rating Linkages to the U.S. Sovereign Rating

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646469

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=824772

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Primary Analyst
Christopher Wolfe, +1 212-612-0771
Managing Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Bain K. Rumohr, CFA, +1 312-368-3153
Director
or
Committee Chairperson
Nathan Flanders, +1 212-908-0827
Managing Director
or
Media Relations:
Brian Bertsch, +1 212-908-0549
brian.bertsch@fitchratings.com

Sharing

Contacts

Fitch Ratings
Primary Analyst
Christopher Wolfe, +1 212-612-0771
Managing Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Bain K. Rumohr, CFA, +1 312-368-3153
Director
or
Committee Chairperson
Nathan Flanders, +1 212-908-0827
Managing Director
or
Media Relations:
Brian Bertsch, +1 212-908-0549
brian.bertsch@fitchratings.com