Fitch sees BBB+ for National Rural notes

Fitch Ratings said it plans to assign an expected BBB+ rating to National Rural Utilities Cooperative Finance Corp.'s (CFC) planned issuance of fixed-rate to fixed-rate, subordinated deferrable debt. The initial fixed rate of interest and maturity date will be determined at the time of issuance.

“The expected rating assigned to the subordinated deferrable debt is two notches below CFC's long-term issuer default rating (IDR) of A. The subordinated deferrable debt rating includes two notches for loss severity, reflecting the debt's deep subordination and heightened risk of non-performance relative to other obligations, namely senior secured and senior unsecured debt,” the agency said in a press release.

CFC plans to use the proceeds for general corporate purposes.

The outlook is stable.

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