Fitch Assigns 'AA-' L-T IDR to Farm Credit Bank of Texas

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has assigned the following long-term Issuer Default Rating (IDR) and additional debt ratings to Farm Credit Bank of Texas (FCBT):

Farm Credit Bank of Texas

--Long-term IDR 'AA-';

--Short-term IDR 'F1+';

--$200 million preferred stock 'A';

--Support '1';

--Support Floor 'A-'.

The Rating Outlook is Stable.

FCBT is a Farm Credit Bank and is one of five banks in the Farm Credit System (FCS; IDRs rated 'AAA/F1+' by Fitch). FCS is a Government Sponsored Enterprise (GSE) created by Congress in 1916 to provide a reliable source of credit and liquidity to the U.S. agricultural community. The Banks jointly own the Federal Farm Credit Banks Funding Corporation (Funding Corp), which acts as their agent in the issuance of Federal Farm Credit Banks consolidated system-wide debt. The five Banks are jointly and severally liable for the Federal Farm Credit Banks system-wide debt securities.

As an instrumentality of the FCS, FCBT helps fulfill an important public mission; promoting a healthy agricultural industry by ensuring that there is reliable availability of credit and liquidity for creditworthy agricultural borrowers. Neither the FCS nor FCBT are guaranteed by the U.S. government. Fitch believes that if the FCS were in need of support, it is extremely likely that it would be provided. However, such support may not extend to the obligations of FCBT, a factor considered in the current rating. The rating also reflects FCBT's sound financial profile, steady profitability and stable trends in asset quality. FCBT also enjoys substantial benefits through its ability to access capital markets through a 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 for the agricultural industry.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 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.