National Rural Utilities opts to forgo renewing ratings with Fitch

By Jennifer Chiou

New York, June 3 - The board of directors of National Rural Utilities Cooperative Finance Corp. decided to pass on renewing its ratings contract with Fitch Ratings Inc. on May 27, according to an 8-K filing with the Securities and Exchange Commission.

The company noted that its decision was not made in connection with any potential change in Fitch's ratings.

National Rural said that in its re-evaluation of its ratings needs and costs, it will instead continue to maintain contracts for ratings on its corporate debt and other instruments from Moody's Investor Services and Standard & Poor's.

In April, the company's chief financial officer, Steven Lilly, said that he believes National Rural is well-positioned to meet its upcoming debt maturities in July and October based on its balance sheet, committed credit facilities and the liquidity provided by members in the form of loan payments and prepayments.

National Rural is a Herndon, Va.-based private-market lender to the nation's electric cooperative.

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